What We Offer

Virtual Power Purchase Agreements

Our virtual power purchase agreements offer a cost-effective way to access clean electricity from our portfolio of solar power plants.

What is a Virtual Power Purchase Agreement (VPPA)

A Virtual Power Purchase Agreement (VPPA) is a financial contract that allows your company to purchase renewable energy from our solar power plants in Europe without physically receiving the electricity. By engaging in a VPPA, you can support the generation of clean energy, receive renewable energy certificates (RECs) and hedge against energy price volatility.

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Benefits of Virtual Power Purchase Agreement for Your Company

Access Renewable Energy

Use clean solar power without on-site installations.

Achieve Financial Stability

Shield your company from market fluctuations, ensuring predictable budgeting

Ensure Energy Security

Reduce dependency on conventional energy markets and enhance your operational resilience.

Reduce Scope 2 Emissions

Get Renewable Energy Credits (RECs) and meet your sustainability targets.

How the Virtual Power Purchase Agreement Works

1. Company purchases electricity from their regular supplier.

2. Project owner sells electricity at market prices to the local grid.

3. The difference between the market price and the fixed strike price (VPPA) is settled monthly.

4. Company receives Renewable Energy Credits (Guarantees of Origin).

Our IPP Portfolio

Photon Energy is an independent power producer (IPP) with a portfolio of solar power plants with a total capacity of 131.1 MWp. Our network of renewable energy assets in Europe and Australia ensures a reliable and consistent supply of clean electricity to our VPPA customers.

Explore Our Portfolio of Power Plants

Frequently Asked Questions

What is a virtual power purchase agreement (VPPA)?

A VPPA is a long-term contract between a renewable energy producer (like Photon Energy) and a corporate buyer (offtaker) for the purchase of renewable energy.

In this arrangement, the buyer agrees to pay a fixed price (the "strike price") for the renewable energy produced by a project, while the actual electricity generated is sold into the wholesale market at fluctuating prices.

A VPPA allows you to support the development of new renewable energy projects while securing a fixed-price for the electricity.

What is the difference between a virtual PPA and a corporate PPA?

A virtual PPA is a purely financial contract without physical delivery of electricity. The energy is sold into the wholesale market and the buyer receives RECs while engaging in financial settlements based on market prices.

A corporate PPA refers to involves the actual supply of electricity to the buyer's facilities. The buyer purchases both the energy and the associated RECs directly from the generator.

Does Photon Energy provide cross-border VPPAs?

Yes, our VPPAs enable the procurement of renewable energy across borders. This flexibility helps offtakers optimize their renewable energy strategies and take advantage of favorable market conditions across Europe.

For further details and options tailored to your country, please contact us.

How long does a typical VPPA last?

VPPAs usually have terms ranging from 10 to 20 years, providing long-term stability.

How do VPPAs align with EU sustainability reporting requirements?

VPPAs support compliance with EU sustainability reporting by providing verifiable evidence of renewable energy procurement. This can be critical for meeting the requirements of the EU’s Corporate Sustainability Reporting Directive (CSRD) and other related frameworks.

How do VPPAs impact Scope 2 emissions?

VPPAs help companies reduce their Scope 2 emissions by allowing them to claim the renewable energy certificates (RECs) associated with the energy produced.

Can any company engage in a VPPA?

Yes, companies of all sizes can engage in VPPAs.

While VPPAs are often associated with large corporations due to the scale of the agreements, smaller companies can also participate through aggregation. By partnering with other small buyers, companies can collectively enter into a VPPA, benefiting from the economies of scale