Power Purchase Agreements (PPA's)
What are they?
If upfront cost is an issue, Power Purchase Agreements (PPA's) can help you transition to lower carbon while your reducing costs.
PPA's are applicable for property developers and retrofitting solar and upgrading infrastructure on Strata, Commercial, Retail, Industrial and Mining.
PPA's are a great retrofit option whereby savings can be generated from day 1 after the works are completed without the need to raise the funds to pay for the works.
The most common form is a solar power purchase agreement, however, embedded network metering, electric vehicle chargers, energy efficient centralised heating hot water and 4 pipe heating, ventilation and air conditioning systems can also be rolled into a PPA.
Why a PPA?
PPA's enable the installation of embedded network metering, solar and battery storage at no upfront cost. The benefits of low cost, zero carbon energy are realised immediately from when the system is energised and the renewable energy is consumed.
The mechanism differs from a direct lease agreement as electricity is consumed and purchased from the onsite renewable energy generator which is owned, operated and maintained under a long term agreement which may range from 10 to 30 years.
Typical PPA's savings for apartment building residences within the Strata community are in the order of 20% to 30%.
Developers can achieve sustainable buildings by leveraging PPA's to reduce their CAPEX on building services ensuring that the community benefits from the most sustainable energy efficient assets that are operated and maintained in accordance with circular economy and lifecycle cost benefit in mind.
Existing Strata communities can take advantage of new Strata regulations which enable 50% or more of owners to vote in favour of sustainability upgrades. PPA's are an excellent option whereby communities may not have or be able to raise the funds to deliver the project in a timely manner.
Commercial & Industrial
PPA's help reduce the risk of value engineering of sustainability features out of buildings by removing these items from a builder's budget and recovering costs over time from the building occupants.
Power Purchase Agreements (PPA's) are becoming more popular amongst commercial and industrial asset owners who would prefer to reduce the risk and hassle of operating and maintaining a renewable energy asset.
Where batteries and solar are combined and managed by Element47 additional cost savings on energy bills or revenue can be gained from new virtual power plant and grid services we offer as an aggregator of renewable energy systems.
Mine sites typically don't see electricity generation as core business. Power Purchase Agreements offer a clear path forwards to reduce carbon emissions associated with their electricity consumption.
Mining company shareholders and stakeholders are becoming more aware of upstream carbon emissions associated with mining critical minerals.
Element47 wishes to support miners and through our global finance partners deliver PPA's for pure renewable energy generation and microgrid operation and management services to mine sites.
Element47 provide PPA's globally through the use of our smart contracts stored on the blockchain. Our PPA's enable us to be paid in any currency or cryptocurrency.
Within Australia regulations on PPA's vary, with the eastern states PPA's being on a connection point approvals basis.
Element47 was granted a Solar Power Purchase Retail License Exemption in Western Australia in 2017. A copy of our license exemption can be found on the Energy Policy WA website or you can download a pdf directly here.