Virtual Power Purchase Agreement (VPPA)

A Virtual Power Purchase Agreement represents a strategic financial understanding between a consumer (usually a corporation or a governmental entity) and a renewable energy producer, aimed at fixing the energy price at a certain level for a determined period. This agreement structure allows both parties to benefit from price security and the advantages of partnering in promoting and supporting the culture of green energy production, regardless of the market mechanisms through which the energy is physically transferred.

VPPAs are valuable tools for companies committed to reducing their carbon footprint and achieving sustainability goals, offering them the ability to indirectly support renewable energy production and to claim carbon credits, without requiring changes to existing physical infrastructure or direct purchases of renewable energy.

The advantages of a VPPA include:

• Price Security: Consumers ensure that the price of the renewable energy they support remains constant throughout the agreement, thus protecting themselves against energy market price volatility.
• Flexibility and Accessibility: These agreements provide an accessible path to supporting green energy for companies that cannot directly invest in renewable energy production or face operational limitations.
  Apollo Trading has the necessary expertise to guide and assist companies interested in implementing a VPPA, offering comprehensive services that include:
• Opportunity Assessment: We analyze our clients’ sustainability needs and goals to identify the best VPPA opportunities.
• Negotiation and Structuring of VPPA: We provide support in negotiating the VPPA terms and structuring the agreement to ensure the most favorable conditions for our clients.
• Implementation and Monitoring: We ensure the efficient implementation of the VPPA and monitor the agreement’s performance throughout, to maximize financial and sustainability benefits.
• Reporting and Verification: We provide detailed reports and assistance in verifying and claiming carbon emission reductions, supporting the transparency and credibility of the companies’ sustainability initiatives.

To explore how a VPPA can help your company achieve its sustainability goals and secure energy costs, contact Apollo Trading at office@apollotrading.ro We are here to offer you the expertise and support needed to navigate the complexities of the renewable energy market.