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Utility-scale renewables (VPPAs)
Meet your renewable energy procurement needs and decarbonization goals with a single virtual power purchase agreement, or VPPA
What Is a Virtual Power Purchase Agreement (VPPA)?
Virtual power purchase agreements are an efficient way to decarbonize
Faced with energy price volatility, market uncertainty, and stakeholder demands for sustainability, organizations are increasingly looking for ways to minimize risk and align with decarbonization targets. VPPAs enable organizations with geographically dispersed facilities to meet their renewable electricity needs while unlocking economic and sustainability benefits in line with their strategy.
A power purchase agreement is a contract between a buyer and seller of renewable electricity. With a physical PPA, a buyer contracts with a developer for purchase of physical power and associated renewable energy credits. A VPPA is a variation on a physical PPA – it is a financial transaction that delivers the environmental benefits of a renewable energy project to your organization, while electricity generated by the project flows to the grid. VPPAs do not change how organizations power their facilities. Decoupling your facility load from the renewable project provides possibilities that are difficult to achieve in other ways, making VPPAs popular method of renewable energy procurement.
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How It Works
How does a virtual power purchase agreement work?
Faced with energy price volatility, market uncertainty, and stakeholder demands for sustainability, organizations are increasingly looking for ways to minimize risk and align with decarbonization targets. VPPAs enable organizations with geographically dispersed facilities to meet their renewable electricity needs while unlocking economic and sustainability benefits in line with their strategy.
A power purchase agreement is a contract between a buyer and seller of renewable electricity. With a physical PPA, a buyer contracts with a developer for purchase of physical power and associated renewable energy credits. A VPPA is a variation on a physical PPA – it is a financial transaction that delivers the environmental benefits of a renewable energy project to your organization, while electricity generated by the project flows to the grid. VPPAs do not change how organizations power their facilities. Decoupling your facility load from the renewable project provides possibilities that are difficult to achieve in other ways, making VPPAs popular method of renewable energy procurement.
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Benefits
The value of virtual power purchase agreements
Meet your sustainability goals
Advance Scope 2 emissions reduction targets by choosing renewable electricity to power your operations.
Simplify renewable energy procurement
Use one VPPA contract to meet your renewable energy procurement needs by aggregating load across multiple geographically dispersed facilities.
Support your local economy
Partner with Enel North America to create local jobs and benefit local communities via our Creating Shared Value approach to business.
Make renewable energy procurement efficient
Use VPPAs to meet your renewable energy procurement goals quickly and efficiently.
Mitigate financial risk during volatility
Benefit from stable energy costs. Work with Enel’s trading desk to customize the contract structure in line with your appetite for risk.
Enhance your organization’s reputation
Receive environmental attributes (RECs) equal to the amount of energy purchased via a VPPA.
Receive proof of impact, locationality
As an offtaker for new renewable energy projects, benefit from additionality and project-specific marketing rights. For more impact, add renewables to your regional electric grid.
Benefit from economies of scale
Partner with other organizations on VPPA aggregations to take advantage of benefits created by large renewable energy projects.
Ensure greater control and flexibility
Partner with one company to holistically address all your energy and decarbonization goals.
Why Enel North America
We are your partner for virtual power purchase agreements
A growing renewables supermajor
The world’s largest retail electricity provider, Enel is rapidly growing with a pipeline of new diverse projects across North America.
Sustainability is in our DNA – creating shared value
From project development to second-life applications of our assets, sustainability is at the center of everything we do. Our community partnerships create positive environmental and social impacts and contribute to a just energy transition.
Financially stable, low-risk supplier
Enel has a strong balance sheet and can weather short-term economic disruptions, ensuring continuity of energy supply.
Renewables markets and trading expert
Our markets and regulatory intelligence and in-house trading desk manage risk and help you take advantage of opportunities. We provide decarbonization solutions and long-term sustainability partnerships, tailored to your specific needs and appetite for risk.
A full-service decarbonization provider
Through our integrated approach, we offer a portfolio of solutions to lead you on your decarbonization journey.
Promotion of clean energy wins
Our communications and marketing teams will work with you to promote your sustainability achievements.
Why Enel North America
We are your partner for virtual power purchase agreements
The world’s largest retail electricity provider, Enel is rapidly growing with a pipeline of new diverse projects across North America.
From project development to second-life applications of our assets, sustainability is at the center of everything we do. Our community partnerships create positive environmental and social impacts and contribute to a just energy transition.
Enel has a strong balance sheet and can weather short-term economic disruptions, ensuring continuity of energy supply.
Our markets and regulatory intelligence and in-house trading desk manage risk and help you take advantage of opportunities. We provide decarbonization solutions and long-term sustainability partnerships, tailored to your specific needs and appetite for risk.
Through our integrated approach, we offer a portfolio of solutions to lead you on your decarbonization journey.
Our communications and marketing teams will work with you to promote your sustainability achievements.
