If you`re interested in renewable energy and sustainability, you may have heard of a Power Purchase Agreement (PPA) in Ireland. But what is a Power Purchase Agreement, and how does it work?
A Power Purchase Agreement (PPA) is a legal agreement between a renewable energy generator and a buyer. In Ireland, a PPA is often made between a renewable energy generator and a business or organisation that needs energy. The agreement means that the generator will provide a fixed amount of renewable energy to the buyer for a set period.
So, why do businesses and organisations opt for a PPA in Ireland? Firstly, it can provide a solution to reduce their carbon footprint and meet sustainability goals. With renewable energy becoming more affordable and accessible, a PPA can offer a cost-effective alternative to traditional fossil fuel energy sources.
Secondly, a PPA can offer price stability for businesses. Unlike traditional fossil fuel energy sources, the price of renewable energy does not fluctuate as much. A PPA can provide long-term price stability, which can help businesses and organisations budget better.
Finally, a PPA can also help meet regulatory requirements. Ireland has set ambitious targets to reduce greenhouse gas emissions, and PPA`s can play a significant role in helping meet these targets.
Overall, a Power Purchase Agreement in Ireland is a legal agreement between a renewable energy generator and a buyer, providing a cost-effective, sustainable, and stable alternative to traditional fossil fuel energy sources.