What does unit contingent mean?

Unit Contingent means that Seller is excused from any failure to Deliver Product quantity on account of failure of a specified Renewable Energy Facility to generate the amount of RECs necessary in the Vintage or other time period indicated.

What is PPA curtailment?

Curtailment. The PPA often describes circumstances in which either party has a right to curtail output. The PPA may permit the buyer to curtail for convenience or what is often referred to as “economic curtailment,” in which case the PPA usually requires the buyer to pay the purchase price for the curtailed generation.

What is a fixed shape PPA?

In a shaped PPA, the seller guarantees the buyer a fixed generation shape—a predetermined quantity of energy delivered over a predetermined period of time. In addition to removing risk from the buyer’s position in the PPA, shaping also has other benefits to the buyer.

What is a busbar PPA?

Under a busbar PPA, the buyer takes delivery of the power at the point where the facility interconnects to the grid. Depending on how a facility’s non- busbar PPA is structured, excesses and deficiencies in power production can create merchant exposure.

What is a bilateral PPA?

The process of bilateral PPAs often involves the utility as a third party. In all of these cases the burden of attempting to keep large consumers is on the utility, given additional pressure for them to offer renewable energy products to their customers.

What is proxy generation?

Proxy generation is an hourly index predetermined by a mathematical formula that estimates how many MWh should have been produced by the solar and storage energy system. It’s based on the solar irradiance as measured by the project’s operational and meteorological measurements, along with a rate of efficiency.

How does a PPA work?

A power purchase agreement (PPA) is a contractual agreement between energy buyers and sellers. They come together and agree to buy and sell an amount of energy which is or will be generated by a renewable asset. PPAs are usually signed for a long-term period between 10-20 years.

What is a P99 hedge?

Fixed quantity energy price swap (aka “P99 Hedge”) A P99 Hedge is a fixed-for- floating swap on the price of a fixed quantity of energy, calculated on an hourly basis. It is a tool used by a wind project to manage the energy price-driven uncertainty of the revenues generated by the sale of electricity to the grid.

Is a liquid’s volume fixed?

Liquids do not have a fixed shape but they do have a fixed volume. The particles are very close together. Most of the particles touch each other. The particles can move around.

What is PPA rate?

The PPA rate usually increases by 1-5% each year for the contract term (i.e. a price escalator) to account for gradual decreases in system operational efficiency, operating and maintenance costs, and increases in the retail rate of electricity. PPAs are generally long-term agreements of 10-25 years.