The various expressions of the PPAs: On-site PPA (also direct line AAE): In the case of on-site PPAs, EE facilities are generally built and operated directly on the buyer`s land or in the immediate vicinity of it by the EEA operator. The supply of energy is provided by a direct line to the buyer. Electricity is therefore made available without recourse to the public electricity grid and the payment of electricity is made on the basis of the contractual price of electricity. As a general rule, the buyer will enter into a complementary electricity supply contract for the EF for the supply of residual electricity. In practice, these are often simpler models, which we already see in part in practice. Off-Site PPA (also Sleeved-PPA): in the case of off-site PPAs, production is independent of the buyer`s location, i.e. the EE operator builds and operates the EE facility on a site potentially particularly suitable for energy and supplies the electricity generated in the general supply network. Physical aerating is therefore provided by the use of the public electricity grid and not by a private direct line. For the corresponding production capacity, the EE operator is able to supply several customers off-site. From a purely physical point of view, the buyer receives all of his electricity from the grid as part of the PPAs off-site site, while the operator of the EE facility counts, on balance sheet, the amount of electricity agreed in the AAE.
Financial AAEs (including financial or synthetic AAEs) are possible for financial LDCs and can be distinguished on a case-by-case basis, including contract for difference (CFD) and option transactions. What all financial PPPs have in common is that they are purely financial contracts between the operator of the SER facility and the customer, which are not intended to provide electricity in an accounting or physical manner. In the case of a contract for difference, it is generally agreed, for example. B, that the buyer will pay the difference from the fixed price of the AAE if the market price is lower than the fixed price of the AAE. Conversely, the operator pays the buyer the difference from the fixed price of AAEs, provided that the market price obtained is higher than the fixed price of the AAEs. Therefore, regardless of market price, the EE operator always receives the fixed price of AAEs agreed by kWh and must not exceed amounts that exceed the fixed price. Source: Uibeleisen/Groneberg – Ashurst What are the different expressions of AAEs, do you see here.previous Why is the PPA becoming more important? With the looming expiration of the 20-year EEG eligibility period, Power Purchase agreements will be promoted as a new business model for many “old facilities.”