Power Purchase Agreement

Power Purchase Agreement

A. PPA Deals:

Power Purchase Agreement:

Client will purchase the electricity generated and actually metered as used by the Client against an agreed tariff structure over a minimum period of time – 10 years or more typically.The system however remains in the ownership ofTRRC.At the end of the term TRRC will offer the client the option to purchase the system outright or extend the PPA agreement, but with no obligation to do so.

Application:

The client wishes to benefit from renewable systems but wants to pay for the electricity as it is generated and consumed.The client does not want to own the system.This is typically a long term contract over 15 to 25 years with the client paying less for the electricity generated than they would pay from either Eskom or the local municipality power provider from the outset of the agreement term..

Deal Structure:

The amount paid is linked directly to that which the system produces and is consumed (metered) by the Client.The system is designed to and sized based on the client energy profile with the requirement that all power produced by the system is purchased by the client.The client will need to underwrite a minimum utilisation of the power generated by the system.

Basis of PPA and Benefits:

The client usage profile must be sustainable, allowing for a part or majority of the client energy to be provided via the PPA agreement at a reduced cost compared to the prevailing cost of electricity from either Eskom or the local municipality. Alternative funded solution variants: Straight Lease Solutions.

B. Fixed Term Lease:

Straight Forward Lease:

Client leases the system and derives the benefit of the system for a set period of time.The lease charges are not specifically linked to the actual power generation profile or consumed, but rather meeting a specific power need.

Application:

Typically this applies where client wants or needs the benefit of the system but has a lumpy or irregular usage profile and prefers a fixed cost agreement for having the benefit of the system.The system suits clients who either have limited or irregular/unreliable or very expensive electricity, but irregular or inconsistent usage profiles, but want the benefit of the system.

Deal Structure:

A lease agreement is implemented with a fixed monthly charge escalating over the term of the lease annually linked to the system size and inherent cost of installation and term funding.This provides the client with certainty of the cost of electricity that can be generated by the system over the term of the lease.Typical lease term 12 to 25 years

Basis of lease:

The lease fee is due independent of how much of the actual energy produced by the system is consumed or not, so long as the system is producing the expectant design energy production profile it was designed to achieve.

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Eco Energy is easy

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Eco Energy is easy

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