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The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted in the vehicle finance market regarding Discretionary Commissions. We want to inform our customers that Anglo Scottish Asset Finance acts as a broker, not a lender, and if you believe you have been impacted by this issue, please contact your car finance lender. For further information, please click here

The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted

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Power Purchase Agreements

Secure the best long-term energy purchase or sale rates when you choose Anglo Scottish as your power purchase agreement broker.

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Why choose Anglo Scottish as your power purchase agreement brokers?

When you choose Anglo Scottish as your power purchase agreement brokers, you’ll enjoy a range of benefits.

  • All the expertise of our dedicated renewables team
  • In-depth knowledge of UK PPA regulations
  • Wide variety of suppliers and buyers
  • Flexible contract terms

Start my power purchase agreement quote

Tell us a little about your business and your desired PPA terms and we’ll get in touch to discuss further.

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Rather speak to an expert immediately?

Call us on 0191 410 4776

Power purchase agreement brokers

A power purchase agreement (PPA) is a form of long-term contract between an energy supplier and an energy buyer. Power purchase agreements stipulate a fixed, long-term rate for the purchase and sale of energy, protecting both parties against fluctuating energy prices and impact from external factors.

Power purchase agreements are therefore hugely beneficial for businesses that are undertaking a renewable venture, such as solar panels or wind turbines, and wish to sell surplus energy to a utility company or public entity.

The agreement covers the terms under which electricity is generated, how and when the electricity is delivered and how and when the electricity must be delivered.

Anglo Scottish’s extensive experience brokering these agreements means we are extremely well-placed to help your business access the best possible terms available.

How do power purchase agreements work?

Power purchase agreements may take a number of forms, though the most common are:

Common forms of power purchase agreements

Corporate power purchase agreements

These agreements refer to when a renewable energy generator works with a corporate buyer, usually to help the buyer meet sustainability criteria.

Common forms of power purchase agreements

Utility power purchase agreements

These agreements take place between a renewable energy generator and the utility company, who buy the energy generated and resell it to the wholesale market or end-users.

Common forms of power purchase agreements

Sleeved PPAs

These agreements take place when a third-party utility company handles the transfer of energy to and from a renewable project. The utility company then ‘sleeves’ the power directly to a buyer, for a fee.

The key elements of a power purchase agreement include

Price terms – The price of purchase in a PPA is typically fixed, though some agreements may stipulate variation in line with market rates

Contract duration – Power purchase agreements usually last for 10 – 20 years.

Volume commitment – This stipulates the amount of energy to be supplied or purchased – usually linked to your capacity to produce it.

 

Negotiating these terms can be challenging – which is where we come in. We’ll help establish the best possible terms for your business, liaising with our extended panel of funders to identify the best agreement for you.

What are the benefits of power purchase agreements?

A power purchase agreement can help your business enjoy:

  • Stable energy pricing
  • A consistent ‘off-taker’ – guaranteeing you have a buyer for the energy you produce
  • Simpler budgeting due to a consistent energy buyer
  • Reduced net spend on your own energy bills
  • Support for further generation of renewable energy

Power purchase agreements are particularly beneficial for businesses that have recently purchased an asset that generates renewable energy. The money earned via the sale of your energy through your PPA can help offset the cost of investment – or make your repayments.

Contact us

Want to find out more about our services for power purchase agreements?

Our Renewable Energy FAQs page may have the answer. Or, head to our dedicated page to find out more about why financing renewable energy is a great option for your business.

Should you require more information, want to begin an enquiry or simply start a no-obligation chat, our expert renewables team are on hand to help.

Contact us today to learn more, or get in touch directly at enquiries@angloscottishfinance.co.uk or via phone on 0191 410 4776.