Are You Ready for a Corporate PPA? A Quick Checklist
Corporate Power Purchase Agreements (PPAs) are fast becoming a key strategy for companies aiming to meet net-zero targets, reduce energy costs, and boost ESG performance. But entering into a long-term energy contract is a big commitment. Before you sign on the dotted line, it’s crucial to assess if your business is ready.
Here’s a quick readiness checklist to guide your decision.
Not sure where to start?
Contact Export Energy today for expert advice, feasibility assessments, and tailored PPA solutions that support your sustainability goals.
1. Do You Have Clear Sustainability Goals?
A Corporate PPA is most effective when tied to measurable sustainability targets—such as achieving net-zero emissions, sourcing 100% renewable electricity, or improving ESG scores.
Ask yourself:
Have we set and communicated carbon reduction targets?
Is renewable energy a part of our sustainability strategy?
2. Have You Assessed Your Energy Usage?
Understanding your energy consumption is key to choosing the right type and size of PPA.
Consider:
Total annual electricity consumption (kWh)
Peak demand and load profiles
Future changes in usage due to expansion or efficiency upgrades
3. Are You Financially Prepared for a Long-Term Commitment?
PPAs typically last 10–20 years. This long-term commitment offers price stability, but requires financial forecasting and risk assessment.
Check:
Can we commit to a fixed-price agreement over time?
Do we understand the financial implications of price floors, escalators, and settlement terms?
4. Do You Operate in an Eligible Energy Market?
Some PPAs—particularly physical PPAs—require access to deregulated electricity markets. Others, like virtual PPAs, are more flexible.
Clarify:
Is our business located in a deregulated or regulated market?
Should we explore virtual options if physical delivery isn’t feasible?
5. Have You Assembled the Right Internal Team?
A successful PPA requires cross-functional input from finance, legal, sustainability, and operations.
Ensure:
Key decision-makers are aligned
Roles and responsibilities are defined
You’ve engaged external advisors (if needed)
6. Are You Aware of the Legal and Regulatory Considerations?
PPAs are complex contracts. Understanding the legal risks and compliance requirements is critical.
Ask:
Have we reviewed the contract with legal experts?
Are we prepared for regulatory changes over the contract’s lifespan?
7. Are You Ready to Own the Environmental Attributes (RECs/GOs)?
To claim renewable energy benefits, your company must retain the environmental certificates associated with the energy produced.
Verify:
Will we receive and retire RECs or Guarantees of Origin?
Do we understand how to report renewable energy use properly?