Power Purchase Agreements have become more widely adopted following the removal of subsides in the UK and from corporates who have committed to reducing their carbon emissions. However, not all renewable PPA’s are the same. Private wire, or behind-the-meter, offers the chance to create a new renewable generation facility on, or adjacent to, the consumer’s site, which in our opinion provides the “darkest green” solution. Whereas purchasing power, or emissions certificates, from an existing renewable facility, is a “light green” solution e.g. no additional renewable capacity is being generated.
At the Farm Energy Company, we are trying to provide the “darkest green solution” that achieves our clients’ goals – and in general, this will involve a combination of private wire and sleeving/virtual PPA structures. The diagram below (click to enlarge) provides a snapshot of the pros and cons of each “shade of green”.