FAQ

1. What is a PPA?

A Power Purchase Agreement (PPA) is a bilateral agreement that allows buyers to purchase power and Renewable Energy Certificates (RECs) from renewable energy providers. The agreement can be flexible to meet the needs of power buyers. For example: transactions may be purely financial or involve the physical delivery of energy; EACs can be bundled at PPA prices; durations, safety packages, penalties, and allowances are negotiated by both parties.

2. What are the benefits of acquiring a PPA?

There are several benefits to purchasing a PPA, including:

• Direct contracting with operators of renewable energy projects.
• Flexibility of terms and types of contracts.
• Transparency of energy costs and long-term planning.
• Contribution to the Sustainable Development Goals.
• Environmental commitment with customers and stakeholders is key.

Additional: With a PPA, you can contribute to the construction of a new plant and thus to the development of new renewable energy.

3. How much electricity can you save by installing your own photovoltaic installation?

In general, for industrial and commercial consumers, savings can be as much as 50% on the energy term of the electricity bill. Several factors can affect:

• Location: Existing solar energy resources.
• Layout and dimensions of the installation: power of the installation, incident solar radiation on the photovoltaic modules (shading, orientation and inclination).
• Price currently paid.
• Agreed rate.
• Consumption profile.

4. Can batteries be installed to store excess energy?

Of course. The current regulations allow the installation of batteries in a complementary way to the photovoltaic installation. By incorporating batteries into the installation, we will be able to increase the % of self-consumed energy of the photovoltaic installation and, in the case of an installation without the sale of surpluses, production. It is also true that it is not interesting in all cases: it will depend on the size of the installation and the consumption that we have.’

5. What is a Virtual PPA contract and what advantages does it have?

The Virtual (or synthetic) PPA is a financial hedge with respect to the Pool price. In this case there is no physical exchange of energy.
In our case, the generation asset exists and will be owned by Recap Energy, so the position is covered by both the seller (generator) and the buyer (consumer).
Unlike an On-Site PPA, at the end of the contract, ownership of the asset does not pass to the Client.

The main advantages of this type of contract are:

1. Savings: Lower price than the Pool price.
2. Visibility and stability: The price is fixed for the entire duration of the contract, although it could be partially indexed to the evolution of the Pool price, the CPI or some other index.
3. Clean energy and carbon footprint reduction: Through the Guarantee of Origin mechanism, the Client ensures that the energy it consumes comes from a clean source that is respectful of the environment.
4. No CAPEX or OPEX
5. e. Flexible duration, up to 20 years.
6. Free choice of vendor