They say almost every situation can be found a way out. What if two companies want to sign the PPA (Power) agreement Purchase Agreement), but they have different the need for a deadline for cooperation? The conflict is theoretically impossible. But we did it.! Read, how to willCommon to conclude an agreement between a small photovoltaic farm and a large energy recipient.
Difficult negotiations of the PPAs
A customer - a factory producing window carpentry came to us in search of green energy from renewable energy producer (RES). Its annual energy consumption was 1.7 GWh. In our offer we had access to energy obtained from the photovoltaic installation, which generated 1 GWh per year. The planned date of launching this farm was scheduled for the second half of 2023. The producer had previously received an offer from a large energy supplier who wanted to buy all the energy produced from him, but the price offered was unsatisfactory and the contract was to apply for three years. This was the only offer the manufacturer received. Since the client needed collateral for the bank to build further investments, he sought a solid and reliable partner to enter into the contract and a good repurchase price.
Despite matching profiles, websites had divergent needs concerning the time limit for starting cooperation. The final customer - the factory - could only contract energy from the beginning of 2024. It already had a contract in force and its termination would mean paying a very large financial penalty for early termination. The production company wanted green energy, and at the same time its supply on the market is decreasing. It was therefore in the interest of both parties to conclude the agreement quickly.
Theoretically, the situation seemed hopeless. However, OZEOS has found a solution and from 2024 the energy will flow to the Client.
The flexibility of the PPAs allowed us to find a solution!
How did we do that? We managed to obtain very good terms of the contract for the sale of energy during the start-up period - from the moment of the start-up of the farm to the time of the entry into force of the cPPA contract with the client. The sales company, which from 2024 will balance (POB) the contract for the Client, undertook to buy back all the energy from the start of the farm until the cPPA agreement entered into force. And equally important at a price satisfactory to the manufacturer. The condition was to use the services of the same seller both during the start-up period and later, as the Marketing Balancer (POB). The manufacturer has been earning his energy from the middle of the year and counting down time until January 1, 2024, when green energy flows to the customer with whom he signed the cPPA agreement.
It is an excellent example that even contracting long-term contracts, such as PPA, can be flexible. Provided that the contract is supported by a professional advisory firm. As you can see, cooperation with OZEOS provides a one-stop shop for both sides of the potential transaction. In this case, greater involvement in the process on the part of the manufacturer was needed, which benefited both parties.