Power Purchase Agreement - Flow Power

Power Purchase Agreement

A long term energy contract tailored to suit your business

Help create demand for Australia’s renewable future.

Secure your energy supply and take advantage of long-term value with a 10-year Power Purchase Agreement.  

Power ahead by purchasing energy linked to wind and solar power projects across Australia. With a Power Purchase Agreement, you have the confidence of reliable energy and long-term pricing. 

How do Power Purchase Agreements work?

  1. A Power Purchase Agreement (PPA) begins with a business committing to pre-purchasing up to 100% of their energy usage via a renewable energy project. 
  2.  If GreenPower is desired, an energy retailer (such as Flow Power) can purchase on your behalf an allocation of renewable energy certificates (LGCs) generated by a renewable project for the business – this is done via the government-accredited scheme “GreenPower”. 
  3. The business’ energy rates are then locked in at transparent prices – for up to 10 years. This long-term financial commitment is an investment that powers more renewable energy projects to be built.  

Key Benefits

  • Source up to 100% of your electricity volume virtually from renewable energy project(s) 
  • Price certainty on the renewable generation costs for the period of the PPA 
  • Support from a dedicated Client Solutions Manager of your account 
  • Intelligent technology included in your energy contract, to manage and monitor your energy 
  • Terms and conditions designed to fit your business  
  • Option to include energy advisory services to improve the way you use energy  
  • Your energy contract creates more demand for renewable energy, meaning more investment in building renewable energy generation 

What is a Power Purchase Agreement?

Long-term value

A Power Purchase Agreement (PPA) is a 10-year commitment to energy offtake equivalent from renewable energy generation projects.  

No matter who your provider is, it’s important to note electricity from the grid is typically the same. Renewable energy generators (such as Flow Power) and fossil-fuel generators both export electricity to the grid, which is then distributed to you. In the process, it is combined and as a result, you can’t choose to use renewable energy only.

A virtual link to renewable energy generators

Flow Power’s PPA presents a solution for businesses wanting to go greener by establishing a virtual link between energy consumers and renewable energy generators. Under these arrangements, you pay for a proportion of the clean energy a renewable generator puts into the grid. Once the capacity of that generator is sold out, demand increases for another to be built! 

Renewable Energy Certificates

With a PPA, you can also secure the rights to the green certificates the renewable energy generator is entitled to receive, called Large-Scale Generation Certificates. Purchasing LGC’s with your Power Purchase Agreement allows you to recognise an equivalent amount of your energy consumption as having zero emissions. In effect, the clean energy they put in ‘nets out’ the mixed-source energy you draw from the grid. 

The benefits for your business

  1. Low-cost electricity – with a PPA you’ll be able to take advantage of the falling price of renewables. With this long-term electricity contract, you can be protected against wholesale market price volatility. 
  2.  Helping to achieve your business sustainability goals – by choosing renewable generation, you’ll contribute to any renewable goals your business has. 
  3.  Knowing where your energy comes from – Under a traditional electricity contract, you buy energy from a supplier without knowing who generated your energy or how it was generated.  

With a PPA, you buy renewable energy directly from the generator. So, you can choose who generates your electricity and the renewable energy source that best suits your business. 

Choosing a generator to virtually link to

You can choose a generator that best matches your business’ time-of-use energy needs by leveraging wind, solar or both suit your energy consumption. 

If the bulk of your energy consumption is in the middle of the day (when solar is abundant and drives the electricity price down)– a solar PPA could be a perfect fit. For non-daytime hours of use, wind supplies consistent power throughout the evening to dawn periods. Together, both sources work to keep prices down.  

Choosing a renewable energy project in your state will also help support local communities and create new employment opportunities.  

Flow Power has a portfolio of Wind and Solar Farms across Australia.

Customise your plan with add-ons that suit your business 

Flow Power has a range of energy management strategy options to help you get better use out of your energy. From Market Monitoring services that tell you when high price events are forecasted to implementing energy strategies like hedges and trading options that help you take control of your energy, we have options available to build you an energy strategy that best suits your needs. 

Speak to an energy specialist to see what options would work best for your business.  

How pricing works

The Power Purchase Agreement is a bespoke energy contract designed in line with your business’s energy use, sustainability goals and corporate social responsibility goals in mind.  

A PPA is a separate arrangement to the physical supply of energy to your premises. Under a PPA you are paying for what a renewable generator supplies to the grid, quite separate from the actual energy that supplies your premises from the grid which is made up of a range of sources. This doesn’t mean that you are paying twice, just that you will always have supply, regardless of whether the wind is blowing or the sun isn’t shining. 

Speak to an energy specialist today about a PPA.  

Is this plan right for your business? 

Power Purchase Agreements are designed for businesses looking to make an impact on their energy usage through a long-term contract.  

Ready to power up? Our friendly energy specialists are here to help.  

If you have any questions about Power Purchase Agreements and our add on features, the Flow Power team are here to help.