Questions from small electricity generators, whose production volumes do not exceed 1000 MWh per year, are increasing to RESOS. So far such manufacturers have sold their energy on the Good Energy Exchange. The hourly energy prices, especially in 2022, were very attractive to them. Therefore, they were not interested in concluding a long-term cPPA contract. In contrast to large sources, their construction was most often financed by its own resources and did not require a long-term contract to secure a credit agreement. However, this situation is changing.
Owners of smaller RES see prices falling on the Good Energy Exchange and the risk of even lower energy prices with RES in the summer period (caused by a large number of photovoltaic installations connected to distribution networks), look for long-term fixed, pre-established price agreements. With this agreement, regardless of the price trend, they will receive the assumed revenue.
Finding a customer on a small (up to 1000 MWh per year) amount of energy is not easy. This is because medium-sized companies are afraid of complex procedures for the conclusion of the cPPA agreement and are not sure if it will pay off. Therefore, one solution for small RES may be to sell energy to an energy company. However, in this case too, the contract can only be concluded for a short period (2-3 years) and the price is significantly lower than the exchange price.
PPA for small RES is possible!
In the event of an unattractive offer of energy companies for smaller RES and price volatility on the Good Energy Exchange, the PPAs are a good solution. Until now, however, the chances for small RES to conclude such an agreement have been slim. The complex procedure, the difficulty of finding a client - could have been dissuasive. The solution is to use the RES platform by smaller manufacturers - we combine small sources from different manufacturers into one large “package” and select a larger customer demand profile.
A small manufacturer gains an end customer in good financial position, allowing him to look at the future calmly and not worry about a certain income from his source.
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