Renewable electricity supply for businesses
A Power Purchase Agreement (PPA) is a long-term renewable electricity supply contract designed for companies with high energy demand. Depending on the contract model, prices or pricing mechanisms are agreed for several years. This can make parts of electricity procurement more predictable over the longer term and help limit price risks compared with relying exclusively on short-term procurement.
The electricity comes from a specifically named wind or solar plant and supplied under the agreed contractual terms. This provides cost transparency, reduces price risks and can support market-based carbon accounting for electricity consumption. The potential economic benefits depend on the PPA model, the agreed terms and conditions, and developments in the energy market.
Types of PPAs
The VSB Group offers various types of PPAs tailored to your individual energy needs:
With an on-site PPA, the generation plant is located on your premises or in close proximity. The electricity is used directly at your site, without using the public grid for these electricity volumes. Depending on the setup, this may offer benefits in terms of grid charges and electricity procurement costs. Under the PPA model, VSB may cover the investment costs for planning, construction and operation, while you purchase the electricity at the agreed terms. This model is particularly suitable for energy-intensive sites with available rooftop or ground space and corresponding electricity demand.
With a near-site PPA, you purchase renewable electricity from a nearby wind or solar plant. The electricity is delivered to your site via a direct line. Depending on the contractual arrangements and technical conditions, this model can support longer-term electricity procurement planning, even if no space for an on-site generation plant is available at your business location.
With an off-site PPA, you purchase electricity under contract from a specific wind or solar plant via the public grid. The allocation of electricity volumes is documented through the contractual arrangements and the corresponding Guarantees of Origin. This model can support longer-term planning of electricity procurement costs and market-based carbon accounting without requiring your business to have its own generation facilities on-site.
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Take a strategic approach to your electricity supply
Energy is an important cost and planning factor for businesses.
Our long-term electricity supply models help you further develop your electricity procurement strategy and your own energy supply.
Use self-generated electricity on-site
The more self-generated electricity you can use directly at your site, the less electricity you may need to purchase from the public grid. Whether this results in cost savings, and to what extent, depends on factors including generation, consumption, the contract model and electricity procurement costs.
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Account for renewable electricity procurement
Depending on the PPA model, you receive renewable electricity together with the corresponding Guarantees of Origin. When appropriately allocated for accounting purposes, these can support market-based carbon accounting for your electricity consumption. Under certain contract models, VSB covers the investment in the generation plant.
Check the PPA potential for your site
PPAs offer companies the opportunity to stabilise energy costs in the long term while making a clear contribution to decarbonisation. They combine economic planning security with genuine corporate responsibility. In many cases, complementary storage solutions can further enhance these benefits. We are proud to demonstrate how renewable energy and industry can successfully grow together.
A partnership that delivers value for both sides
Our on-site, near-site and off-site solutions offer different models for the long-term procurement of renewable electricity. Depending on the model, you can plan electricity costs over a longer period, increase the share of renewable electricity in your supply and support market-based carbon accounting.
Case Studies
VSB & Mercedes-Benz – Europe’s first automotive PPA
For its plant in Jawor, Mercedes-Benz secured long-term wind power supply through VSB from the nearby Taczalin wind farm (45.1 MW). This first corporate PPA of its kind in the European automotive industry now supplies the site entirely with renewable electricity