https://wiki.treasurers.org/w/index.php?action=history&feed=atom&title=Virtual_PPAVirtual PPA - Revision history2026-06-03T07:52:17ZRevision history for this page on the wikiMediaWiki 1.40.0https://wiki.treasurers.org/w/index.php?title=Virtual_PPA&diff=50351&oldid=previmported>Doug Williamson: Create page. Source: Schneider Electric https://perspectives.se.com/renewable-energy/what-is-the-difference-between-direct-and-financial-ppas-for-corporate-buyers2021-06-15T03:09:12Z<p>Create page. Source: Schneider Electric https://perspectives.se.com/renewable-energy/what-is-the-difference-between-direct-and-financial-ppas-for-corporate-buyers</p>
<p><b>New page</b></p><div>''Sustainability - renewables - electricity - power purchase agreements - contract for differences.''<br />
<br />
Abbreviation for Virtual Power Purchase Agreement.<br />
<br />
A virtual PPA is a contract between a green electricity generator and a buyer. However, no renewable power is physically delivered. <br />
<br />
Instead, the generator sells their renewable power directly to the grid and receives the open market price. <br />
<br />
The project developer pays the difference to the buyer when the agreed-upon PPA price (or strike price) is below the market price, and vice versa. <br />
<br />
<br />
This type of contract is sometimes known as a ''financial'' PPA, and is distinguished from a Direct PPA (under which power is physically delivered to the buyer).<br />
<br />
<br />
The virtual PPA can also be viewed as a fixed-for-floating swap, the flows being swapped between the parties being a fixed power price, and the floating market price.<br />
<br />
<br />
== See also ==<br />
* [[Additionality]]<br />
* [[Asset finance]]<br />
* [[Contract for differences]]<br />
* [[Corporate finance]]<br />
* [[Distribution]]<br />
* [[Existing asset]]<br />
* [[Gas purchase agreement]]<br />
* [[Green]]<br />
* [[Infrastructure]]<br />
* [[Integrated water and power plant]]<br />
* [[New build]]<br />
* [[New-to-earth asset]]<br />
* [[Offtaker]]<br />
* [[Plant]]<br />
* [[Power purchase agreement]]<br />
* [[Project finance]]<br />
* [[Recourse]]<br />
* [[Renewables]]<br />
* [[REGO]]<br />
* [[Sleeving]]<br />
* [[Solar CSP]]<br />
* [[Solar PV]]<br />
* [[Sustainability]]<br />
* [[Swap]]<br />
* [[Transmission]]<br />
* [[Transmission and distribution]]<br />
<br />
<br />
==External link==<br />
[https://assets.crowncommercial.gov.uk/wp-content/uploads/Power-Purchase-Agreements-PPA-An-Introduction-to-PPAs.pdf Introduction to Power Purchase Agreements - UK Crown Commercial Service]<br />
<br />
[[Category:Accounting,_tax_and_regulation]]<br />
[[Category:The_business_context]]</div>imported>Doug Williamson