PPA Buying and selling energy in the long term

PPAs are long-term power purchase agreements between renewable energy producers and large consumers, typically offering a fixed price. These agreements are highly advantageous for energy producers as they ensure a steady income stream over an extended period.

In 2015, the 193 UN member states adopted the 2030 Agenda for Sustainable Development, a global action plan for people, the planet, and prosperity. 

This agenda includes 17 Sustainable Development Goals (SDGs) to be achieved by 2030, calling for action to end poverty, protect the planet, and improve people's lives globally.

SDG 7 focuses on the energy sector to ensure universal access to affordable, reliable, sustainable, and modern energy and support the energy transition. To achieve this, investments in renewable energy are crucial, but building wind and solar farms requires securing long-term energy purchase agreements at stable prices.

This is where PPAs come in. They facilitate financing and investment in new renewable installations by providing security to producers, investors, and developers, helping bring projects to life.

As a global leader in energy trading and development, especially in wind and solar energy, Axpo has contributed to the energy transition through its expertise in PPAs for over 15 years. We started in the Nordic countries, becoming their leading promoter of PPAs. Today, we operate in 40 global markets, enabling numerous long-term energy purchase agreements.

PPAs are a strategic business line for Axpo, reinforcing our commitment to environmental protection.

Our proposal is based on three fundamental principles:

• Flexibility: We offer traditional long-term hedges, such as fixed prices, and more innovative solutions. We price both base load and profiles adapted to the project’s generation profile.

• Customised Products: We tailor contracts to your specific needs.

• Professional Risk Management: We also offer related services such as market representation, cost optimisation for imbalances, and trading of guarantees of origin. Recently, we’ve developed innovative products to help battery project developers manage long-term risks.

At Axpo, we offer PPAs to large companies with our solar plants, adapting agreements to meet their specific needs, ensuring stable and competitive long-term prices, and enabling better financial planning. Our ability to manage all aspects of the project (construction, operation, and maintenance) ensures a comprehensive, high-quality service and a long-term relationship based on trust and transparency.

We offer several types of PPAs: