Power Purchase Agreements (PPAs): How Businesses Use Renewable Energy to Minimize Their Environmental Impact
In light of recent political decisions, several regional leaders have decided to take climate matters into their own hands, enforcing environmental regulations and promoting eco-friendly initiatives on a more local level. Business leaders are following in these admirable footsteps, implementing green guidelines and renewable energy at the corporate level.
By investing in clean energy, organizations are doing their part to create a healthier planet. They are also making smart business decisions. Many corporations have entered into Power Purchase Agreements, or PPAs, with independent renewable energy producers, such as wind farms and solar power providers. As part of these agreements, corporations receive clean energy at a fixed (often lower) price, protecting themselves against price volatility that comes from traditional power providers. Companies can considerably reduce their energy costs, while stimulating the growth of clean energy projects and meeting their own corporate sustainability commitments and goals. And the renewable energy developer receives funding which allows them to build or expand their green energy project.
Some corporations, as part of their PPA, have a renewable energy project installed on their property, creating a direct source of eco-friendly power for their business. Others opt for a virtual PPA, in which a company purchases a large portion of, or sometimes all, the power a renewable project sends to the main electricity grid. The company receives power from the main grid, but it has contributed a hefty amount of completely clean energy towards the country’s overall power supply.
If a Purchase Power Agreement is slightly outside your corporate budget, terrapass offers Carbon Offsets, Renewable Energy Credits (RECs) and Green-e Products, which allow an organization to take responsibility for their climate impact. For details on the terrapass corporate sustainability solutions, visit us here.
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