Powering A Sustainable Future

A Virtual Power Purchase Agreement (VPPA) is a financial arrangement through which a company agrees to purchase the renewable energy generated by one or more specific projects, usually wind or solar facilities. Under the agreement, the physical electrons produced by a project on behalf of the company and injected into the grid equals the number of electrons withdrawn from the grid by that company over a billing cycle. At the same time, the Environmental Attributes associated with the agreed-upon amount of energy are assigned to the purchaser to be either retired or sold. VPPAs are a way for businesses to support renewable energy projects and demonstrate a commitment to sustainability.

Power Purchase Agreement (PPAs) and Virtual Power Purchase Agreements (VPPAs) are both contracts related to renewable energy, but they differ in certain aspects.

A Power Purchase Agreement (PPA) typically involves a direct agreement between an electricity generator (often a renewable energy project like a solar or wind farm) and a buyer (such as a business or utility). With a PPA, the buyer agrees to purchase the physical electricity produced by the contract facility at a predetermined price over a specified period, to use directly for its operations.

In contrast, a Virtual Power Purchase Agreement (VPPA) is a financial agreement where a company commits to buying a specific quantity of renewable energy produced by the contract facility at a predetermined price over a specified period, without taking actual physical delivery of the electrons. The contract facility injects the electricity into the grid at the wholesale price, and the buyer pays or receives any price difference between the contract price and the spot price, without taking physical delivery of the electrons. They buyer also receives any clean attributes or renewable energy certificates (RECs) from the contracted energy.

We work with CarbonFree and other developers to identify grid level solar project sites. We then aggregate portfolios of consumers, providing large commercial and industrial electricity consumers the opportunity to purchase renewable energy directly from the source within their province or jurisdiction. It is the portfolio of consumer VPPAs that allows the project to be financed.

Yes, your VPPA will be contracted with one or more specific renewable energy projects, allowing you to identify the specific source of your renewable energy.

Contracts can be negotiated for different terms but generally longer 18 to 20 year terms are better for all parties.

Yes, our product is a bundle of both the environmental and financial benefits of the renewable energy project.

There are potentially two options available to the customer. Settlement for the energy may occur directly on your Utility bill or separately through monthly statements from the project owner.

Yes, a proposed amendment to the Ontario Regulation 429/04 will allow IESO customers who pay Global Adjustments costs based on their electricity consumption during the five peaks hours, will have the contracted energy from the project during those hours deducted from their usage.