When procuring renewable energy with a green PPA it is of utmost importance to also include the underlying Energy Attribute Certificates (EACs) in the contract. EACs are the only way to credibly connect the megawatt hours (MWh) of energy produced by a solar or wind farm to the energy consumed by a corporate customer. First Climate can support and advise on finding the right contractual model to procure green energy credibly and sustainably from a renewable energy asset.

First Climate works closely with global sustainability reporting standards, such as the Science Based Targets Initiative (SBTi), CDP and the RE100 initiative to ensure that our clients not only measure their Scope 2 emissions in line with these standards, but also that the green energy procurement meets their defined criteria. PPAs, especially those concluded with newly constructed wind and solar assets, fulfill these criteria. PPAs show a high level of commitment to supporting the development of new renewable energy projects, ensuring additionality. They also provide significant price security. To connect the consumption of renewable energy to its generation, EACs need to be included in the energy supply contract.

To determine the right size as well as the best suited technology of a PPA it is mandatory to evaluate the load profile to minimize oversupply of renewable energy. Since every load profile has its unique characteristics our PPA Experts analyze this data and match it to simulated generation profiles of wind and solar farms. Once the appropriate PPA-volume as well as the best fitting technology (or a combination of technologies) is defined, First Climate supports its corporate clients to conduct a Request for Proposals (RFP) to obtain PPA-offers, including modelled generation profiles of planned wind and solar projects to assess and identify the most suitable generation facility to conduct a PPA with.

The short answer is “no”. The long one must be “no, but…”. Besides the procurement of EACs, which when adhering to a certain set of criteria, are also an instrument for renewable energy procurement recognized by most major sustainability reporting standards, PPAs can be an additional way to implement renewable energy to your power procurement. Depending on your overall energy demand, PPAs can be an integral part to your (green) energy procurement strategy, since they not only ensure renewable energy procurement but also provide long-term price stability. An integrated green energy procurement strategy usually consists of several pillars which also can include self-generation to strike the balance between energy security, economics, and sustainability reporting requirements.

PPA costs and pricing are constantly changing on the market and depend on various factors such as current supply and energy source. Solar energy PPA costs for example, are different than wind energy PPA costs. Because PPA contracts are inherently complex, there is a wide variety of pricing structures available. First Climate provides support to companies to find the most suitable PPA pricing and achieve renewable energy targets.