These often (but not always) involve a direct PPA between the corporate buyer and the generator. The corporate buyer usually enters into associated arrangements (either managed by the corporate buyer itself or via a utility) to enable the output purchased to be used for the benefit of the corporate’s wider facility load. However, in some physical PPAs, generators can retain some risks such as volume, unbalance etc. which requires the generator to enter into a utility PPA in order to manage the risk.
Also known as “synthetic” or “virtual” PPAs, are a CFD or financial derivative under which the parties agree a strike price, with payment flows being determined by comparing that strike price against a market reference price. They do not involve the physical delivery of output to the buyer or a utility agent of the buyer.
Also known as a “co-located” renewable energy facility based on one or multiple sites belonging to the corporate that utilises existing real estate/space, such as roof space for solar panels or other space on, or adjacent to the site to provide renewable energy directly to the business e.g. factory or R&D plant).