New-to-earth asset

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Sustainability - renewables - electricity - power purchase agreements.

In this context, a new-to-earth 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-to-earth asset is likely to:

  • Be more expensive, because set up and installation costs will not yet have been covered, but
  • Be 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-to-earth assets are sometimes known as New build assets.

See also

External link

Introduction to Power Purchase Agreements - UK Crown Commercial Service