PPA contracts – long-term price predictability
PPA (Power Purchase Agreement) – a long-term electricity purchase and sale agreement between a producer and a buyer. It allows for an agreement in advance on the price and volume of electricity for a specified period.
This model is relevant when the aim is:
- predictable long-term income;
- less dependence on price fluctuations;
- clear conditions for project financing.
Trading on the stock exchange – a more flexible model
The generated electricity can also be sold on the electricity exchange at the current market price.
This model is more often chosen when:
- the aim is to take advantage of market price fluctuations;
- production volumes are changing;
- it is desired to maintain greater flexibility.