What is a Virtual Purchase Power Agreement?
A Virtual Power Purchase Agreement (VPPA) is a type of renewabe energy contracting structure that provides a financial hedge against future energy fluctuations. These types of contracts, typically secure a long term stream of revenue for an energy project by providing the energy off-taker a steady cost of electricity.
The VPPA structure supports bringing new, clean renewable energy onto the grid on behalf of the offtaker, and allows you to meet sustainability goals. Everun can help ensure your organisation achieves their renewable energy goals, while limiting exposure to unnecessary risks.
The benefits of a VPPA for a high energy user include:
- Helps the business to demonstrate green credentials and achieve net zero targets
- Improves financial security with long term price and budget certainty, mitigating the risk from extreme market volatility
- With a significant price benefit compared with the wholesale market, it also generates long-term savings for the business
To talk to the team about how a VPPA may suit you and your business, click here.