Corporate Renewable Power Purchase Agreements: Powering Emissions Reduction
Companies are setting aggressive goals to reduce their greenhouse gas (GHG) emissions. One way for companies to reduce their GHG emissions is to replace their current electricity sources with renewable electricity sources. Companies can increase their renewable energy sources through a corporate renewable power purchase agreement (rPPA).This is a contract between an off-taker and a renewable electricity producer in which the off-taker agrees to pay the producer a fixed price for each unit of electricity supplied. The off-taker benefits from the rPPA as it is provided cost certainty for its electricity needs and associated renewable energy attributes. The electricity producer benefits as the rPPA provides revenue certainty to cover costs, interest, and an adequate return on investment.
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