Green Corporate PPA: the green electricity supply contract

By ENGIE - 07 December 2020 - 16:47

ENGIE is a global leader in renewable energy, with nearly 28 GW of installed capacity. We aim to develop and deploy customized solutions to enable access to cost-efficient renewable energy.



Green PPA: giving access to renewable energy

Our Green PPAs (Power Purchase Agreements) give our clients access to renewable energy that is both reliable and certified, while fixing the costs of their energy consumption. The Green Corporate PPA enables our clients to decarbonize their energy consumption while anchoring their costs. Designed for businesses and communities, this medium or long-term contract (from 5 to 20 years) enables the purchase of renewable energy at a predefined and stable price from ENGIE.
The Green Corporate PPA is the best way to achieve a rapid switch to green energy sourcing. There are two types of Green PPAs: offsite and onsite.

Offsite Green Corporate PPA: guaranteed green electricity, at a competitive price

ENGIE already provides more than 3.5 GW in offsite Green Corporate PPAs in countries where the market is expanding: United States, Mexico, Brazil, Chile, Norway, Spain, Italy, France... We work with many prestigious clients such as L'Oréal, Walmart, Microsoft, Google, Allianz, T-Mobile, Adisseo, Wienerberger, the City of Houston and Boston University.


What does it consist in? 

  • Offsite Green Corporate Power Purchase Agreements are fixed term contracts between a renewable energy producer and an electricity consumer (industries, service sector, communities, etc.). 
  • These contracts are known as offsite when energy production equipment is not installed on a customer’s premises - as opposed to onsite PPAs where renewable generation facilities are set up on a user’s site. The advantage of offsite schemes is that they enable the development of higher capacity wind or solar farms, and benefit from the best locations for the most cost-efficient electricity production.
  • Already commonplace in North America and the Nordic countries, Green Corporate PPAs are undergoing considerable growth in Europe today, particularly due to falling green energy production costs.

Two types of offsite Green Corporate PPAs

Physical Corporate PPA: use the energy you buy

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How does it work? The client makes a commitment with ENGIE to purchase a certain amount of green electricity produced by a renewable energy farm, at a rate defined in advance (whether fixed or indexed) for a period ranging from 5 to 20 years.


What are the advantages? The client benefits from a direct link between the electricity they use and the electricity produced by the contracted renewable energy farms. Thus, they can attest to the renewable origin of the electricity consumption and show for the client’s commitment in relations to short supply chains and local approaches.

Virtual (or financial) Corporate PPA: guarantees, without changing your consumption structure

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How does it work? Similarly to physical Corporate PPA, the client agrees to a long-term purchase of an amount of electricity from ENGIE at a predefined rate (fixed or indexed). This purchase enables ENGIE to invest in new green energy infrastructure.
ENGIE then resell and valorize the electricity the client has purchased on the market. Therefore, the client’s existing contract remains unchanged, while they benefit from the guarantees of origin from the contracted renewable assets.
Virtual Corporate PPAs are an ideal solution when physical Corporate PPAs would be too expensive, for example when a customer has multiple sites across several countries.


What are the advantages? Simply and quickly decarbonize sites while contributing to the development of new renewable energy farms in geographic locations where the conditions are most suitable.

Onsite Green PPAs: green electricity produced on the client’s site


What does it consist in?

  • An onsite Green PPA is a power purchase agreement where ENGIE finances the design, installation and operation of a renewable energy production equipment on clients’ site.
  • Aiming at providing green electricity to commercial and industrial clients, communities, universities, hospitals, cities and other consumers, the onsite Green PPA allows the site owner or tenant to self-consume the energy produced, for a period of 10 to 25 years.
  • With more than 1 GW of onsite solar capacity installed in more than 20 countries, ENGIE, a global leader in renewable energy, supports its clients in every step of their project. 


How does it work?

  • By using the available surfaces onsite, the client produces and consumes its own green electricity at a guaranteed price and directly benefits from all of the energy produced on the premises.
  • When more energy is produced than consumed, the surplus can be injected and sold to the grid (depending on the local regulations in force).
  • When electricity is not being produced - i.e. at night for solar or when the wind doesn’t blow for turbines - the electricity needs will be met by the grid, for example with green electricity through an offsite Green Corporate PPA.