Power purchase agreement: Enhance the value of your energy with flexible selling

We create tailor-made contracts to optimize your portfolio, with clear pricing structures that maximize asset value, reduce risks, and stabilize revenues.

Power purchase agreements: What are PPA contracts?

A PPA (Power Purchase Agreement) is a bilateral medium- to long-term agreement between an energy buyer and a renewable energy producer. Under the contract, the producer commits to supply a predetermined amount of green energy over a specified period at a price agreed in advance.

BayWa r.e. customizes PPA contracts according to the specific needs of different producers and the structure of their portfolios. We offer tailored, flexible, and innovative solutions designed to generate sustainable value over the long term. In particular, the main pricing models we provide are:

Fixed Price Model: the entire production covered by the PPA is remunerated at a pre-agreed fixed price. This approach significantly reduces market risk exposure and ensures stable, predictable returns over time.
Indexed Price Model: production is remunerated at a variable price linked to the zonal price of the Day-Ahead Market (MGP). This allows the producer to benefit from market price increases and maximize the value of energy during periods of higher prices.
Split Model: a hybrid solution combining both pricing approaches: a portion of the production is remunerated at a fixed price, while the remaining portion follows the variable market price. The allocation percentages are fully customizable, allowing a balance between stability and market opportunities according to the producer’s profile.