Enel Group Websites
Power Purchase Agreement
Management of planning and risks related to production from renewable source.Contact Us
The Power Purchase Agreement (PPA) is a physical contract that provides for the withdrawal of energy produced by renewable energy plants. PPA assigns to the buyer the management of imbalances, in addition to the supply of a series of energy management services such as production forecast, daily transmission and definition of offers to the energy markets; the final accounting, reporting and collection of revenues from the sale of energy, the management of all the economic items to the markets, the network provider and the local distributor, the withdrawal of the Guarantees of Origin and REMIT reporting. If the PPA is concluded at a fixed price, it also allows to fix the sale price of energy produced by renewable energy plants for a predetermined period of time, guaranteeing protection from the volatility of the price of energy.
Management of relations with GME (Energy Markets Manager), GSE (Energy Services Manager) and TERNA at the care of the buyer.
Containment of the risk in the imbalance regime
Reduction of the risk of payment of imbalance fees.
Reduction of market volatility
Reduced exposure to the variability of energy price.
PPA can be classified and structured on the basis of different criteria:
1) management of the imbalance regime
- PPA with imbalance charges/revenues charged to the producer
- PPA with imbalance charges/revenues charged to the buyer
2) price risk management
- PPA at a fixed price
- PPA at price indexed to the zonal price
- PPA with margin sharing
- PPA at price indexed to the zonal price with fixing option