World Kinect’s teams of experts guide you through every step of the Power Purchase Agreement process so your organization can meet its sustainability goals. We begin with an in-depth PPA assessment that takes stock of your energy needs and goals before advising on the best solution for your organization.
A Power Purchase Agreement (PPA) is a long-term contract (typically 10-15 years) through which a corporate buyer agrees to purchase electricity and Energy Attribute Certificates (EACs) physically or virtually from a renewable energy generator. (EACs also known as Renewable Energy Certificates (RECs) in North America and Guarantees of Origin (GOs) in Europe have many different names around the world.)
A popular solution for helping businesses migrate toward a net zero future, this powerful tool also helps meet long-term carbon reduction goals and satisfy various stakeholders. There are generally 2 types of PPAs:
Electricity produced by a wind or solar facility is physically delivered to power the corporate buyer's operations.
A financial arrangement between a renewable energy generator and a corporate buyer guarantees a cash flow for the renewable energy project.
When securing an off-site PPA, the right partner can make all the difference. World Kinect’s energy specialists are with you from beginning to end, delving into the details of energy markets and solutions so you don’t have to, while helping you negotiate the optimum contract with some of the best Project Owners around the globe.
At a Get Kinected event in Minneapolis, Minnesota, renewable energy experts provide insight into the tangible benefits of Virtual Power Purchase Agreements.
Partnering with World Kinect to secure a PPA starts with an assessment of your organization, its energy needs and its overall goals. In just a few weeks, we will provide you with a no-obligation detailed analysis of the market, support for internal key stakeholder alignment, a financial assessment of potentially fitting offers and a strategy for moving the project forward with timelines and milestones. The PPA assessment service takes about six weeks.
Working with World Kinect as a PPA advisor begins with the full PPA assessment and progresses to an in-depth PPA project selection process. This typically includes a detailed analytical and economic analysis of real PPA projects on the market and in our pipeline, support selecting your PPA project, assistance negotiating the term sheet and definitive PPA, and ongoing post-PPA execution support as needed. A PPA advisory takes about nine to twelve months, depending on complexities.
In 2022, the Inflation Reduction Act expanded tax credits for renewable energy, added new technologies, and introduced “transferability” to boost corporate investment and help developers maximize their tax benefits. Considered by some in the industry to be “truly transformative,” the concept of tax credit transferability has added new opportunities to the marketplace.
Want to know more? Ask about World Kinect’s Transferable Tax Credit Advisory. Our team of experts helps you determine if TTCs could help you save money on your tax bills, support renewable energy development, and potentially fund future decarbonization initiatives.
