In recent years, energy has gained increasing importance in the business environment, becoming a strategic factor for many companies. Simultaneously, the acquisition of sustainable products and services in the household, such as efficient appliances, infrared heating systems, water-saving practices, and a commitment to sustainability and environmental protection, is gaining greater relevance in business operations.
This has led organizations to focus more on initiatives aimed at reducing water consumption, minimizing their carbon footprint, promoting circular economy, and ceasing investment in fossil fuels.
The energy procurement process is based on the acquisition and distribution of electricity to consumers through intermediaries known as energy marketing entities.
These entities purchase electricity in the wholesale market, also called the electricity pool, and then invoice customers based on their consumption. Electricity is not stored, so the electrical supply is generated from day to day and is acquired through a marginal market price.
Power Purchase Agreements (PPA) are gaining increasing relevance among companies. PPAs are long-term contracts for the purchase of renewable energy between a producer and a consumer at a pre-agreed price. These contracts typically have durations ranging from 5 to 20 years.
Consumers can reduce their ecological footprint by using renewable energy from sources such as wind or solar. PPAs can be classified into three main types:
-On-site PPA: The renewable installation is built within the customer’s facilities and is connected to their internal network.
-Off-site PPA: The customer receives electricity from a grid-connected project that is not located on their premises.
-Virtual PPAs: These agreements are based on a price agreement between the generator and the customer but do not involve the physical delivery of energy from one to the other.
In this way, PPAs represent a significant step towards a more sustainable model in the global economy. These energy contracts allow companies to secure a reliable electrical supply and contribute to their sustainability goals while saving on investments and maintenance expenses.
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