New build: Difference between revisions
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In simple terms, striking a power purchase agreement (PPA) in relation to a | In simple terms, striking a power purchase agreement (PPA) in relation to a new build asset is likely to: | ||
*Be more expensive, because set up and installation costs will not yet have been covered, but | *Be more expensive, because set up and installation costs will not yet have been covered, but | ||
*Considered more "green", because new green capacity is added to the power network. | *Considered more "green", because new green capacity is added to the power network. | ||
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In this context, new build assets are sometimes known as New to earth assets. | In this context, new build assets are sometimes known as New-to-earth assets. | ||
Latest revision as of 15:56, 23 June 2021
Sustainability - renewables - electricity - power purchase agreements.
In this context, a new build asset is an asset for green electricity generation that has not yet been built.
Contrasted with an Existing asset.
In simple terms, striking a power purchase agreement (PPA) in relation to a new build asset is likely to:
- Be more expensive, because set up and installation costs will not yet have been covered, but
- Considered more "green", because new green capacity is added to the power network.
- Be longer term than an existing asset PPA, and
- Provide greater scope for a buyer to secure prices for a correspondingly longer time period.
In this context, new build assets are sometimes known as New-to-earth assets.
See also
- Additionality
- Asset finance
- Corporate finance
- Distribution
- Existing asset
- Gas purchase agreement
- Green
- Infrastructure
- Integrated water and power plant
- Offtaker
- Plant
- Power purchase agreement
- Project finance
- Recourse
- REGO
- Renewables
- Sleeving
- Solar CSP
- Solar PV
- Sustainability
- Transmission
- Transmission and distribution
- Virtual PPA
External link
Introduction to Power Purchase Agreements - UK Crown Commercial Service
