Power Purchase Agreement
Power Purchase Agreement
A long-term contract for renewable electricity that locks in predictable prices for the buyer and revenue certainty for the producer — the cornerstone instrument of the Nordic energy transition.
5-15
10-1000
Scope-2
Bilateral
About PPA
A long-term agreement for purchasing electricity, concluded between a power producer and an energy-intensive corporation.
THE CONTRACT
A Power Purchase Agreement, or PPA, is a long-term agreement for purchasing electricity. PPAs usually have a duration of 5–15 years, with an annual volume of delivered electricity ranging from 10 to 1000 GWh per year.
THE HEDGE
A PPA functions as a long-term electricity price hedging instrument, benefiting both the power consumer and the electricity producer. Unlike traditional derivatives hedging, PPAs offer flexibility with various delivery and pricing structures.
THE INVESTMENT
PPAs may serve as financial instruments for power developers, producers and investors — particularly when seeking financing for renewable assets under development. By entering into a PPA, the power consumer actively contributes to new renewable investment.
Benefits
Three reasons energy-intensive corporates sign PPAs.
Cost certainty, sustainability credibility, and long-term price risk management — captured in a single PPA structure.
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Stable, locked-in electricity pricing for the contract tenor
Affordable and predictable electricity pricing.
PPAs provide stable and predictable pricing for electricity, allowing energy-intensive corporations to plan their budgets more effectively — and removing exposure to spot-market volatility over the long term.
ESG advantages.
By engaging in PPAs, corporations can significantly reduce their Greenhouse Gas (GHG) Scope-2 emissions, helping them align with global ESG goals — and giving industrial suppliers a competitive advantage in their supply chain.
CO2
Scope-2 emissions reduction aligned with ESG targets
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Forerunner positioning, media recognition, brand uplift
Brand value and media recognition.
Corporations that sign PPAs position themselves as forerunners in sustainability — earning recognition for their efforts, attracting positive media attention, and increasing their brand value.
Next steps
Where are you in the process?
For consumers
PPA for Power Consumers
Secure the most suitable PPA for your business — from strategy through structuring, RFP, and execution.
You can also ask for current PPA opportunities on sale!
For developers
PPA for Power Producers and Developers
Bring renewable projects to market with bankable revenue structures, credible counterparties, and Nordic pricing intelligence.
Get in touch
Considering a PPA? Let's talk.
A short conversation is often enough to clarify what is realistic, what is optimal, and what to do next.