ENGIE’s fixed-price PPAs give boost to zero carbon transition
With the introduction of fixed price options for long-term power purchase agreement (PPA) contracts, ENGIE is helping developers to overcome a major obstacle to investment in renewable and low-carbon electricity. This initiative will provide a considerable boost to accelerate the UK’s transition to zero carbon.
Building large-scale power generation assets requires considerable investment over a relatively long period of time. Until recently this was facilitated by government subsidies, but these have now largely ended making it harder to raise capital from investors. ENGIE’s new ‘bankable PPAs’ provide assurance for investors that the output from any new plant will earn a guaranteed income for the duration of the loan repayment period.
The new long-term PPA offer gives developers the option of choosing a 100% fixed wholesale price arrangement for the entire contract for agreements of up to 10 years – something that was only previously available for short-term agreements. Developers can also choose competitively priced index-linked price agreements, based on trusted indices, including seasonal fixing and Contract for Difference (CfD) compatibility.
ENGIE has an impressive track record of providing secure PPAs for all types of new-build electricity generation plant. The company also has wide experience of working with developers to agree investment-grade payment guarantees that are accepted by all major banks, funders and legal firms.
Read more by visiting: https://www.engie.co.uk/insight/new-long-term-ppa-option-aims-to-boost-investment-in-low-carbon-generation/
For more information contact:
Matt Dracup, Energy Services Director
telephone: 07976 345933
| email: matt.dracup@engie.com | website: www.business.engie.co.uk
view profile on ESTA at: www.estaenergy.org.uk/members/engie-power-ltd
All ENGIE (Power Ltd) News
- CBI Appoints ENGIE UK CEO to Public Sector Partners Council
- ENGIE UK & Ireland CEO, Nicola Lovett has been appointed as chair of the CBI’s Public Sector Partners Council. | 15th February 2021
- ENGIE and Scania team up to deliver eMobility solutions across Europe
- Scania partners with ENGIE and EVBox to develop electric charging solutions in Europe for trucks and buses | 13th November 2020
- ENGIE to help deliver zero carbon for South Somerset
- South Somerset District Council (SSDC) has contracted ENGIE to develop a net zero carbon roadmap. | 21st October 2020
- John Lewis Partnership teams with ENGIE to drive environmental targets further
- The John Lewis Partnership has teamed up with leading energy and services company ENGIE to further support the Partnership’s drive to deliver its ambitious environmental targets. | 30th September 2020
- Bardsley England selects ENGIE to help deliver carbon-negative fruit
- UK fruit producer Bardsley England has selected ENGIE to be its long-term delivery partner for achieving carbon-negative produce. | 3rd September 2020
- ENGIE’s fixed-price PPAs give boost to zero carbon transition
- New long-term PPA option aims to boost investment in low-carbon generation | 17th August 2020
- Workspace 2: Balancing Cost & Options
- Workspace 2: Balancing Cost & Options | 18th June 2020
- An ENGIE-led consortium is to develop a Zero Carbon Smart Local Energy System for Rugeley town
- An ENGIE-led consortium is to develop a Zero Carbon Smart Local Energy System (SLES) for Rugeley town. | 18th February 2020
- ENGIE and EDF Energy sign £350m deal to extend FM partnership until 2027
- ENGIE and EDF Energy have signed an extension to their existing long-term partnership, which will see ENGIE continue to provide a range of facilities management and specialist technical support services to EDF’s nuclear power stations in the UK until the end of 2027. | 16th December 2019
- ENGIE secures £90m long-term carbon and cost savings deal with Edinburgh St James
- ENGIE will offer low carbon, affordable heat to all homes and businesses at the £1 billion mixed use development | 28th October 2019