Physical PPA: A contract where renewable electricity is physically delivered to the buyer's site or grid connection. The generator supplies power through the grid under agreed terms. Best suited for companies with large energy loads and direct grid access. Guarantees actual renewable power consumption.
Virtual PPA (VPPA): A financial agreement without physical delivery, based on a contract-for-difference model. The buyer and generator settle the difference between market price and strike price. Ideal for corporates in deregulated markets or without grid access. Enables renewable energy claims without operational complexity.
Synthetic PPA: Similar to VPPA but tailored for specific regulatory or market conditions. It functions as a hedge against price volatility while supporting renewable claims. Used in markets with complex grid or legal structures. Provides financial certainty and sustainability benefits.
Sleeved PPA: The renewable power is routed through a utility intermediary that manages delivery and billing. The buyer signs with the utility, which "sleeves" the PPA into its supply contract. Perfect for companies seeking simplified settlement and risk reduction. Offers a single utility bill and streamlined process.
Green PPA: A PPA structured to meet sustainability standards like RE100 or CDP, often bundled with Energy Attribute Certificates. It ensures compliance with global frameworks and credible reporting. Common among corporates with ESG commitments. Aligns procurement with sustainability goals.
On-site PPA: Renewable generation is installed at the buyer's premises, such as rooftop solar or on-site wind. The buyer pays for electricity produced under a long-term contract. Ideal for businesses with available space and high daytime loads. Reduces transmission losses and boosts green credentials.
Cross-border PPA: The buyer and generator are in different countries, leveraging regional interconnectors for delivery. Common in regions with renewable-rich neighbours and strong grid links. Helps corporates access cheaper or cleaner energy sources. Expands procurement options beyond domestic markets.
Hybrid PPA: Combines multiple technologies like solar, wind, and storage to provide firmed renewable supply. Addresses intermittency and ensures reliable delivery. Suitable for companies needing stable green power 24/7. Improves resilience and optimises renewable mix.