Corporate Power Purchase Agreement (cPPA)
GÉNÉRALE DU SOLAIRE, a French independent producer of renewable electricity since 2008, can assist you in setting up a corporate power purchase agreement (cPPA) to secure your supply of renewable energy and strengthen your CSR commitments.
What is a cPPA?
A cPPA (Corporate Power Purchase Agreement) is a long-term electricity purchase agreement between a renewable energy producer and an offtaker.
The terms of the agreement bind both parties to the volume, duration, and price of the electricity for a defined period. Entering into such a contract provides the producer and the company with contractual stability that is decoupled from fluctuations in the electricity market.
This solution enables a direct supply of renewable, carbon-free electricity with the associated guarantees of origin.
A cPPA meets the needs of, for example, energy-intensive industries, local governments, and public administrations.
Why Sign a cPPA? The Main Benefits
- Securing Electricity Prices: a cPPA allows you to lock in an electricity price over the long term, providing a stable, fixed, and predictable rate. This contractual arrangement protects the company from energy market volatility and improves its medium- and long-term budget visibility.
- Renewable energy supply: by contracting directly with a green energy producer, the company secures its supply while ensuring that the electricity it consumes comes from renewable sources, in line with its energy strategy. The contract includes guarantees of origin associated with the photovoltaic plant’s production.
- Strengthening energy independence: the cPPA helps diversify supply sources and limit dependence on utility providers and market fluctuations, thereby strengthening the company’s control over its energy strategy.
- Highlighting CSR commitments: by supporting the development of renewable energy, the company affirms its role as a key player in the energy transition. This mechanism helps reduce its carbon footprint and strengthens the credibility and visibility of its CSR policy.
On-site and Off-site PPAs
In an on-site PPA, the renewable energy generation facility is located directly on the company’s consumption site or in its immediate vicinity. The electricity generated is then consumed directly on-site, without passing through the public power grid (or only to a very limited extent).
In an off-site PPA, the generation facility is located away from the consumption site. The electricity generated is fed into the power grid and then transmitted to the consumer via the grid. The company and the producer sign a long-term contract defining the volumes and price of the electricity.
Générale du Solaire supports you in your on-site or off-site PPA projects. Contact our experts to learn more.
Why put your trust in Générale du Solaire?
Expertise
A key player in the sector since 2008, we are a French group, an independent green power producer and experts in solar projects. We master the entire photovoltaic project value chain, from development to operation.
Commitment to quality
and the environment
We are committed to quality in everything we do and have obtained ISO 9001 and 14001 certifications. As a member of the Soren association, we are already planning the future dismantling of photovoltaic power plants and the recycling of solar panels.
Flexibility and responsiveness
Flexibility and responsiveness are part of our DNA, enabling us to respond and adapt to the specific needs of each photovoltaic project.
FAQ
What is the maximum term of a cPPA?
The term of a cPPA is generally long in order to ensure financial and energy stability. Most cPPAs last between 10 and 20 years.
Is a cPPA suitable for small and medium-sized businesses, or only for large corporations?
A cPPA is primarily suited for companies with high electricity consumption, which generally means large corporations rather than small and medium-sized businesses.
How is the price set in a cPPA?
The price in a cPPA is determined in advance by the company and the electricity producer. It can take several forms, including:
- Fixed price: the rate per MWh paid by the company remains constant throughout the contract and is linked to an index that is uncorrelated with the electricity market
- Variable price: the rate is linked to an electricity market index and may therefore change
What is a Guaranty of Origin, and is it included in a cPPA?
The Guaranty of Origin (GO) plays a central role in a cPPA. These are official certificates issued for each MWh produced by a facility, certifying that the electricity actually comes from a renewable source. Générale du Solaire systematically includes it in a cPPA.
What savings can be expected from a 10-year PPA?
A 10-year cPPA offers significant potential savings by stabilizing and securing electricity costs. The amount of savings will depend on several factors: the negotiated price, the market price of electricity, the price of your electricity contract, the company’s consumption, and the pricing structure (fixed or variable).
