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Power purchase agreements

Power Purchase Agreements (PPAs) are also known as power supply and power offtake agreements. Statkraft is a leading provider of PPAs throughout Europe and offers you various contract models.

A power purchase agreement (PPA) is a contract between an energy seller and a buyer.

At Statkraft, we act as a catalyser in the market by taking on time, volume, price and credit risks both for developers and consumers. We reduce complexity and risk and thus facilitate impactful actions in the market.

The actual structure of the contract depends on market regulations as well as the needs and risk appetite of all parties involved and is defined together with our teams.

A generic overview of different types of PPAs is provided below:

Illustration of power production, storage and agreements

PPAs for power producers: Plant operators, project developers and investors

PPAs suitable for all intermittent energy sources and flexible assets as well as projects that are bank or equity-financed to enable their development:

  • different pricing models and durations of contract
  • turnkey optimisation for flexible generation​
  • physical or financial

Illustration of power supply

PPAs for electricity consumers: companies, municipal utilities and energy suppliers

PPAs as power supply contracts have become synonymous with green power supply for industrial customers, municipal utilities and redistributors. In addition to enabling the purchase of green power, they are also a key instrument in the expansion of renewable energies.

  • different delivery models and contract durations
  • tailored pricing schemes to accommodate the customer's supply and hedging strategies​
  • with or without guarantees of origin
  • Statkraft can cover up to 100 per cent of the electricity consumption with renewable energy

Statkraft matches the needs of all parties

 

One of the challenges in the energy market is that owners of renewable plants and power consumers do not have the same needs. One wants uninterrupted supply, the other can only sell power when it is produced according to weather conditions.

To resolve this conflict, Statkraft meets the needs of both parties:

 

  • Offering predictability and security of supply to consumers thanks to a large portfolio of power plants combining water, solar and wind to ensure a steady supply.

  • Providing financial predictability and security for plant owners through the ability to generate stable, predictable revenues.

PPA_inforgrafikk_eng_2-01.png

Førrevassdammen, in Norway.
Photo: Lars Petter Pettersen

Since 1895

Statkraft offers sustainable green energy solutions globally based on our 125 years of expertise in developing, building and operating hydropower, solar and wind installations.

Illustration with map of Europe

Leader in PPAs

In Europe, we are the no. 1 producer of renewable power and a leading provider of power purchase agreements. We are Norwegian state-owned and have an A- credit rating.

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