Complex: PPAs are complex contracts which often require a lot of time to agree on the terms. This also makes Corporate PPAs primarily concluded by large companies.
Long duration: As PPAs are traditionally long-term contracts, both parties are bound by long-term conditions. In this case, the financial risk is high: if electricity prices rise, the generator may lose a lot of revenue, if prices fall, the customer loses out.
Variable generation: Furthermore, there are volume and profile risks related to the variable nature of wind and solar energy generation. If the agreed amount of electricity is not available at the time of delivery, the plant operator must be able to compensate for this financially or physically, or outsource it to a third party, such as an electricity trader.
Disclaimer: Next Kraftwerke does not take any responsibility for the completeness, accuracy and actuality of the information provided. This article is for information purposes only and does not replace individual legal advice.
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