Power Purchase Agreements

The perfect partner for your PPA

RWE is one of the global leaders in developing, constructing, operating, and owning utility-scale renewable projects.

We have extensive experience in simplifying the often complex process of corporate Power Purchase Agreements (PPAs), by understanding our partners and offering products specifically designed and tailored to their needs.

What is a PPA?

A renewable Power Purchase Agreement, or PPA in short, is a long-term contract under which a business agrees to purchase electricity directly from a renewable energy generator. PPAs therefore provide financial certainty to the purchaser and the project developer, which removes a significant roadblock to building new renewable energy power plants, helping deliver more renewable energy and saving CO₂.

Physical PPA

RWE delivers power directly to the customer and receives the PPA price
RWE builds a plant especially for this purpose and covers not only the new asset but the entire supply chain
RWE sells surplus power to grid and receives the spot price
The customer buys additional power from the grid/utility and pays the spot price
The customer receives guarantees of origin (where available)

Virtual (Financial) PPA

RWE delivers power to the grid and is reimbursed via its existing market access
The customer buys power from the grid and pays the spot price
RWE and the customer settle the difference between the spot price and PPA strike price
The customer receives guarantees of origin (where available)

Understanding our customers

We acknowledge the inherent uniqueness and complexity of each PPA.

Therefore we focus on understanding our customers’ needs and offer tailored solutions. For further details and more comprehensive insights, please explore our Energy Solutions website and please don’t hesitate to reach out to our team of experts.