ERM Power launches Corporate PPA offering
ERM Power is proud to have launched a new Corporate Renewable Power Purchase Agreement (PPA) product to enable easier access to renewable energy sources for commercial and industrial customers.
According to David Guiver, ERM’s Executive General Manager Trading, the new product allows commercial and industrial businesses to buy a partial interest in the output of a large renewable power station in order to support their business and environmental energy objectives.
“Working through ERM Power, businesses can enjoy the benefits of a PPA without the intricacies of negotiating and managing a complex contractual arrangement directly with a renewable energy provider.”
David said many large corporates were committed to moving to 100% renewable energy, given sustainability targets and continued volatility in the wholesale markets.
“PPAs are an increasingly popular option, but businesses must proceed cautiously if negotiating these directly, as there may be hidden pitfalls,” David said.
“Our new product helps businesses secure exposure to renewable energy generation as part of their energy mix in a way that’s simple, transparent and efficient.”
In Australia, PPA contracts typically exist for the purchase of large scale generation certificates (LGCs) and the energy revenue produced by a renewable energy generator for a standard term of 15 years.
Our new product ensures that for an agreed fixed price, businesses will receive a notional percentage of the energy revenue and the LGCs generated by renewable operators, with the LGCs more aligned to their mandatory requirements. Customers can choose their level of participation in increments of 5% and have the added flexibility of a three-year agreement.
ERM Power has the ability to aggregate multiple business customers to gain access to large PPAs, opening opportunities that haven’t previously been available to those businesses.
Handling all aspects of the PPA on the business’s behalf, ERM Power will source the project, negotiate the terms and manage financial settlements, delivering a peace-of-mind commercial arrangement to its business customers.
David said the new product was a natural evolution for ERM Power, building on the company’s commitment to supporting the development of renewable infrastructure in Australia.
ERM Power has entered into offtake agreements with developers of wind and solar farms and has also launched new-generation financial instruments into the wholesale market to support developers of renewable infrastructure.
David says ERM has been actively working with customers to incorporate renewable PPAs into their energy procurement strategies, to support business, social and sustainability targets.
To support the new product, ERM Power has called for expressions of interest from renewable project developers and asset owners with projects located within Victoria or New South Wales, connected to the NEM, with an installed capacity of 10MW or more. Uncontracted and partially contracted assets interested in offtake agreements for a three to five-year term are being encouraged to respond.
Interested parties should email [email protected] to obtain further information.