The traditional Power Purchase Agreement model we work with is the most common form of PPA in the renewable energy and waste-to-energy industry, and the one people are most familiar with.
In this scenario, a project is proposed, which will produce renewable electricity.
When looking at a project, we have a window in mind for the cost per kilowatt hour we will charge, a pair of numbers where the high end and the low end of the range is based primarily on who pays for the project.
Bearing this in mind, consideration is given to the applicable cost per kilowatt hour of electricity. Analysis is done. The target kilowatt hour rate range is identified.
If the cost of the project is completely financed, and the customer does not come out of pocket for their project’s budget, their PPA will be signed reflecting the higher end of the price range.
No matter the price we offer on a PPA, our aim is always to demonstrate savings, deliver value and put more renewable electricity production sources in place.