Power purchase agreements (PPAs) secure a long-term source of renewable energy for your business from a trusted supplier. That energy can be price-fixed for up to 25 years. BayWa r.e. specialize in crafting tailored solutions that meet your needs, with zero investment.
Our Energy Solutions team has established a global track record of 1.8 GW in renewable PPAs, 750 MW involving corporate buyers. With each new partnership, we leverage the deep market knowledge and expertise available within BayWa r.e. to deliver real change.
Don’t let high costs stop you from embracing renewables. Join the leading Asian businesses spearheading the energy transition and embrace your sustainable future.
Find a route to renewable energy
We’re here to help you make informed choices about your business’ transition toward a renewable energy supply. You have plenty of options, but the best ones might not always be clear.
Using our decision tree, you can find the pathway that’s right for you.
What initial investment are you willing to make, if any? Do you want to take responsibility for operations and maintenance? Do you mind your renewable energy installation showing up on your balance sheet?
By getting to know you and your business, we identify the ideal energy sourcing mix for your needs.
Agreement Models
Direct investment: Engineering, procurement, and construction (EPC) projects
- With direct investment, you legally own the system. You’ll retain full ownership and control over your renewable energy installation.
- Ownership unlocks various benefits, including the Green Investment Tax Allowance (GITA). GITA is a government financial incentive to promote investments in green technologies, via tax deductions or credits to eligible businesses.
- You own the electricity generated by the system, which you can use to reduce dependence on conventional power sources.
- A direct investment in renewable energy installations secures a long-term energy solution with added financial incentives.
On-site PPAs
- With an on-site PPA, you don’t need to make any upfront investment in the renewable energy system. BayWa r.e. takes care of the total investment, making it a cost-effective option.
- Purchase solar electricity at a discounted rate, up to 50% lower than the market rate.
- The PPA ensures long-term electricity price stability.
- We handle the total investment required for the project, ensuring that the system is designed, constructed, and maintained to deliver reliable electricity.
- Despite not owning the system, clients benefit from owning the electricity generated by the system.
Off-site PPAs
- With off-site PPAs, BayWa r.e. owns and operates the solar farm while you enjoy the environmental benefits of renewable energy.
- Electricity from the solar farm is sold and settled based on the system marginal price (SMP), as set by the National Energy Development Authority (NEDA).
- Off-site PPAs work on a contract for differences (CfD) basis, using a predetermined price difference, known as the strike price. If the SMP is higher than the strike price, BayWa r.e. compensates you for the difference. If the SMP is lower than the strike price, you’ll need to compensate us.