Power Purchase Agreements 101

Corporate power purchase agreements (PPAs) are long term contracts – typically 10-15 years – for the direct purchase of electricity between a business and a large-scale renewable energy generator.

PPAs can provide businesses with electricity cost savings, increased budget certainty, and a long-term hedge against any future energy market volatility.

A number of high-profile PPAs have been announced in recent years, including ones involving BlueScope Steel, Carlton and United Breweries (CUB), Mars, Orora, Telstra and the University of New South Wales (UNSW).

PPAs do not suit all businesses, and require extensive feasibility assessments to ensure alignment with operational needs.

For the latest updates on corporate PPAs, see Energetics’ corporate renewable PPA deal tracker.

To learn more about corporate PPAs, visit the Business Renewables Centre Australia (BRC-A) website.

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