Virtual and Direct Power Purchase Agreements

Power your Organization with Renewable Energy

Power Purchase Agreements (PPAs) / Virtual Power Purchase Agreements

If you’re adding sustainable options to your energy management plan, PPAs are a great way to make progress on decarbonization without a large upfront capital investment in infrastructure. But securing these long-term contracts requires experience and expertise.

Our team of experts will guide you through every step of the Power Purchase Agreement process. After an in-depth PPA assessment, we can tailor a plan that addresses your energy needs and program goals, simplifying renewable energy procurement. Throughout the contracting process, we’ll be immersed in the details—from vendor selection to contract negotiation and beyond—so you don’t have to be.

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What is a Power Purchase Agreement?

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 and renewable energy goals and satisfy various stakeholders. There are generally 2 types of PPAs: Direct or Physical Power Purchase Agreements (DPPA) and Virtual or Financial Power Purchase Agreements (VPPA).

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Power Purchase Agreement Solutions from World Kinect:

Direct Power Purchase Agreements

Electricity produced by a wind or solar facility is physically delivered to power the corporate buyer's operations.

Virtual Power Purchase Agreements

A financial arrangement between a renewable energy generator and a corporate buyer to obtain renewable electricity, along with associated Energy Attribute Certificates (EACs).

Securing Power Purchase Agreements

When committing to a long-term contract of any kind, you want experts on your side. Our advisors have years of experience arranging PPAs for clients of all sizes and industries. They delve into the details of energy markets and solutions while helping you understand commercial terms and support contracting with some of the best, most reliable project owners around the globe.

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World Kinect Explains: Virtual Power Purchase Agreements

At a Get Kinected event in Minneapolis, Minnesota, renewable energy experts provided insight into the tangible benefits of Virtual Power Purchase Agreements.

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Power Purchase Agreement (PPA) Assessments

The first step is a PPA assessment, where our advisors capture your energy needs and sustainability goals along with your overall organizational goals and priorities. After careful research, we will provide:

A no-obligation, detailed analysis of the market
Support for internal key stakeholder alignment
A financial assessment of potentially fitting offers
A strategy for moving the project forward with timelines and milestones

Power Purchase Agreement (PPA) Advisory

PPA Advisory process starts with PPA Assessment phase to develop the company’s PPA strategy. The 6 week program helps the company to jump start the PPA process with a ready to execute strategy.

PPA Advisory Steps:

Project Kick-Off: Kick off the project, present project objectives, align project timeline, and explain roles and responsibilities.
Stakeholder Alignment and Education: Conduct workshops for stakeholders to understand what involvement is needed in the PPA process
Project Selection/RFP: World Kinect will prepare evaluate available projects to its market outreach, gather responses and analyse them.
Financial Modelling & Shortlisting: World Kinect will run financial models and recommend shortlisted projects based on NPV/Cashflow results
Developer Interviews: Developer interviews with shortlisted developers to further understand project and counterparties
Project Selection: Customer will select project and developer based on analysis provided and interviews
Term Sheet negotiation: World Kinect helps the customers to draft and negotiate the term sheet
PPA negotiations: World Kinect supports the customers to negotiate the key commercial terms in the PPA contract and execute the PPA.

Are Power Purchase Agreements Right for You?

If PPA's don't meet your organization's needs, our renewable energy experts can recommend several other options that support your sustainability goals and your energy management program.

Our team can also help guide you through your other options for mitigating Scope 2 emissions. If you have the physical space and other requirements, onsite solar could be a great option. Unbundled Energy Attribute Certificates (EACs) around the world can help your decarbonization and sustainability goals as a bridge solution until more long-term solutions are feasible or in place.

If you are not sure where to start, our energy experts can conduct a Renewable Energy Strategy Assessment to help determine which solution would work best for your business.

Explore Your Options

Could PPAs be the right choice for your organization’s energy and sustainability needs?

Speak to a renewable energy expert to explore how PPAs could augment your current energy mix.

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Why World Kinect for Power Purchase Agreements?

The strength of our service comes from our energy experts, who share over 100 combined years of expertise in consulting and renewable energy. Customers consider World Kinect an extension of their team – always on their side to help optimize every facet of their energy needs.

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Could transferrable tax credits (TTCs) help boost your renewable energy efforts?

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.

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