A PPA (Power Purchase Agreement) is a long-term contract between a producer of zero-emission energy from RES and its buyer. PPAs or CPPAs, which are one of the unique products in Boryszew Group’s offer for business and industry, guarantee a stable price for emission-free energy, ensuring energy independence and sustainable development of the company.
PPA – what is it?
A PPA is a bilateral contract signed directly between a supplier of energy produced in a RES installation and a buyer in need of significant volumes of emission-free electricity. On the Polish market, PPA contracting is most otien subject to energy produced by photovoltaic or wind installations.
There are several models of PPAs. These include on-site PPA (installation of RES close to the consumer), direct line (energy transmited via a dedicated line from the supplier to the consumer), and off-site PPA (energy is transmited via the existing distribution system).
PPAs are a market-based instrument that is supported by the European Union in regulations and strategies. It is one of the tools for achieving the goals of green economic transformation and decarbonization of industry. According to market forecasts, the demand for PPAs in Poland will grow steadily.
Who can enter into a PPA?
Par􀆟es to the PPA are operators (owners) of RES installations and buyers. On the supplier side, most otien there are Polish or foreign investors and developers of RES installations. On the customer side, there are most otien entities whose activities require increased consumption of electricity. This is, for example, an industrial company, corporation or other institution.
How to sign a PPA?
A PPA agreement specifies the terms for the supply of renewable energy for a specified period, usually from 5 to 20 years. Under a PPA, the buyer agrees to purchase a specified amount of renewable energy over a specified period, and the supplier agrees to supply that energy at a specified price.
Before signing a contract, it is crucial to analyze on the part of the potential customer the demand for carbon-free energy. The next step is to negotiate with the RES energy supplier as to the rates and fees for the energy produced. Consulung in this area is offered by Boryszew.Energy.
The PPA contract contains, among other things, such information as the place of energy delivery, the volume of energy contracted, the contracted power and the conditions for its change, the price and the applicable tariff group, the method of setlement, the term of the contract, and provisions on liability for violation of the provisions of the PPA contract. There is no single model PPA contract, it is being negotiated to suit the needs of the electricity supplier and customer.
Benefits of PPAs
One of the most important reasons why PPAs are beneficial to industry and business is the ability to secure fixed prices for electricity supply. In traditional energy supply contracts, prices can be variable and subject to market fluctuations. With PPAs, the energy price is usually fixed for the duration of the

contract. This means that companies can avoid the uncertainty of rising energy prices and beter plan their finances.
Another argument is the need to significantly reduce carbon dioxide (CO2) emissions. By investing in renewable energy sources, companies can reduce their carbon footprint, which is important in the fight against climate change.
Third, for many companies, building and maintaining their own RES infrastructure to be costly and complicated. PPAs allow companies to take advantage of the benefits of renewable energy without having to invest in developing their own infrastructure.
Using renewable energy improves a company’s image in the eyes of customers, investors and the public. Companies that make commitments to sustainable energy production are otien seen as more responsible and competitive in the market.
The cPPAs in Poland involve few risks for the two parties, no less there are some risks that can be minimized already at the stage of signing the contracts.
When signing a contract, the RES energy supplier should mitigate the risks of, among other things, the buyer defaulting on payments under these long-term contracts. The key is to sign an appropriate PPA, which will be prepared by lawyers.
The energy buyer should make a good analysis of energy demand over the next 10-25 years, which is the period of the signed PPA. The company’s development strategy goals and energy demand forecasts are key. An energy audit will help with this.
Currently, only a few member states have active PPA markets. On the buyers’ side, there are usually large companies related to the IT sector, for example. Restrictions on the PPA market in Poland are regulations, but this is gradually changing. In 2023, regulations included provisions for so-called near site direct wire, a nod to industry decarbonization.
Considering a PPA for a business? Contact the Boryszew Group team
The Boryszew.Energy team consists of specialists in RES energy trading, supporting the decarbonization of Polish industry and companies on a daily basis. We advise at every stage of PPA contracting, providing clients with the best deals for the sale of green energy from RES.
Do you have questions? Contact Boryszew.Energy