Why so-called PPAs are the key to the energy transition for industry — and why Austria’s green power producer Enery is launching the Enery Marshall Plan for energy-intensive industries.
To answer the question “What is a PPA?” one sentence suffices: “A PPA is a win-win situation.” A PPA, short for Power Purchase Agreement, is a special electricity supply contract in which an industrial company forms a partnership with a renewable energy producer for mutual benefit. However, PPAs are not yet as widespread in Austria as in other European countries or the USA. “From our perspective, PPAs are one of the strongest levers for the energy transition,” explains Philipp Kamaryt from Enery. For this reason, numerous industrial corporations have already implemented PPAs with Enery.
These represent best cases for the model of individual EIPs (Enery Industry Partnerships), which Enery established two years ago. Under this framework, Enery actively offers and implements PPAs for domestic industry. These EIPs now also form the basis for the proactive “Enery Marshall Plan,” which actively strengthens and secures the industry.
How does a PPA work?
A Power Purchase Agreement simply means an electricity purchase contract. It is a supply agreement between a power producer and a power consumer, where a specified volume of renewable electricity is delivered at a precisely defined fixed price. The contract is tailored specifically to meet the needs of the industrial company.
With a physical PPA, green electricity is generated on behalf of an industrial company and purchased directly from the producer at a fixed price for the agreed contract duration. There are two types: Onsite PPAs, where electricity is delivered directly from an on-site PV system (on the roof or premises), and Offsite PPAs, where the producer supplies green electricity from external open-space installations.
A virtual PPA, on the other hand, is a financial agreement between the energy producer and the company. The company purchases green electricity at a fixed price and volume, but this electricity is bought from the market rather than directly from the renewable energy supplier.
With a PPA (Power Purchase Agreement), CO₂ emissions can be efficiently reduced while securing long-term stable energy costs.
— Philipp Kamaryt, Enery Vice President Innovation
What major advantages do PPAs offer?
PPAs provide industrial customers with reliable, long-term, and cost-effective green electricity supply. Buyers benefit from planning security, as they become independent of fluctuating electricity prices. In addition, green electricity with guarantees of origin helps reduce the industrial operation’s carbon footprint and supports Austria’s climate goals. Truly a win-win situation for everyone.
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.