Private Wire
The renewable technology can be either installed on your site or through the Farm Energy Company renting suitable land nearby. The new generator will connect directly to your plant.
This has several advantages like:
- Cost reductions through avoiding grid charges (where regulation allows this)
- Creates tangible additional renewable energy capacity
Virtual PPA (VPPA)
In essence, a virtual PPA is a Contract for Difference (CfD) between a business and renewable energy generator. Both parties agree on a fixed electricity price, and the purchaser receives the green certificates for the contracted amount. The generator will then sell its production on the wholesale market.
If the wholesale price < agreed on VPPA price = the purchaser pays the difference to the generator
If the wholesale price > agreed VPPA price = the generator pays the purchaser the difference
Advantages include:
- Location-independent (incl. cross border within EU)
- No operational complexities (e.g. grid connection sharing)
