A Physical PPA (Power Purchase Agreement) is a contract between an energy buyer and Lightsource bp typically at a fixed rate for physical delivery and allocation of the solar plus storage facility’s products. A project with a physical PPA is normally located close to the energy buyer’s load.

In a physical PPA, an energy buyer signs a long-term contract with Lightsource bp who will build, maintain, and operate a renewable energy system either on the customer’s property (on-site) or off-site. Regardless of whether the system is on-site or not, the Physical PPA customer receives the physical delivery of electricity through the grid. The customer agrees to purchase the power at a set price over an agreed upon term, and Lightsource bp assumes the risks associated with owning and operating the system.

Available products with a physical PPA:

  • Energy
  • Environmental attributes
  • Capacity
  • Ancillary services

Location: Project is locally or regionally sited because basis is typically reduced when project node falls within the settlement zone or hub, as a result of higher correlations.

Typical customers: Retail Providers, Utilities, Corporates, Cities, Universities

Advantages:

  • Cost savings
  • Long term electricity stability and predictability
  • Ability to purchase large volume of electricity through a single transaction

 

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Physical PPA case studies:

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Penn State University

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Alabama Municipal Electric Authority

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Constellation

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