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:
Kate Bond, Head of Marketing & Communications
telephone: 07736 107151
| email: kate.bond@engie.com | website: www.business.engie.co.uk
view profile on ESTA at: www.estaenergy.org.uk/members/engie-power-ltd
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