Operational asset

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Sustainability - renewables - electricity - power purchase agreements.

In this context, an operational asset is one that has already been built, and is already generating renewable electricity.

Contrasted with a New build.

In simple terms, striking a power purchase agreement in relation to an operational asset is likely to be:

  • Less expensive, because set up and installation costs may already be covered, but
  • Considered less "green", because no new green capacity is added to the power network.

In this context, operational assets are sometimes known as Existing assets.

See also

External link

Introduction to Power Purchase Agreements - UK Crown Commercial Service