Power Purchase Agreement Bilanzierung
kenty9x | December 15, 2020 | 0As part of their sustainability strategies, companies across the globe are entering into power purchase agreements (PPAs) with renewable energy generators. This paper aims to help address issues surrounding accounting for corporate renewable PPAs. Companies across the globe are assessing their impact on the environment. As part of their sustainability strategies, they are striving to reduce their greenhouse gas emissions. Because technology is evolving and renewable energy is becoming more cost competitive, the decarbonization of electricity is an achievable goal. One way to buy renewable power is by entering into corporate power purchase agreements (PPAs) directly with renewable energy generators. Corporate renewable PPAs are contracts that contain the commercial terms of the purchase of renewable energy, such as the contract period, point of delivery, delivery date/times, volume, price and product. In addition to fulfilling sustainability goals, companies are also entering into corporate PPAs for economic and branding reasons. PPAs are economically attractive because they often contain pre-agreed prices for a period of time, which limits exposure to power price variability, while direct sourcing from renewable producers ensures long-term energy cost affordability. The priority of supply for renewable energy, which results from Article 11, paragraph 1, first sentence, of EEG 2017, is also maintained. With the distribution then independent of the promotion, the typical installation operator – in case of continued operation – enters the other direct marketing in accordance with Article 21 bis of the EEG 2017.
To this end, the rules relating to the procedure for changing the forms of transfer (21b, 21c EEG 2017) apply. An AA as an electricity supply contract falls within the EEG`s form of sale of any other direct sale. In Germany too, the theme of AAEs is developing a new dynamic – not least because from 2021, state aid through the Renewable Energy Act (EEG) for the first fleets of significant installations will end. In order to operate these facilities profitably, operators need direct access to electricity consumers. Energy consumers want solutions that meet their often ambitious sustainable development goals. And suppliers need an offer in their energy portfolio to meet this demand. AAEs can meet all of these different requirements after the expiration of the EEG aid. Coussin: Two basic constellations, physical and virtual contracts, can still be distinguished, where physical PPAs can still be divided into site and off-site (or sleeved). With regard to physical PPPs, the actual supply of electricity is carried out by the facility manager, for example in the form of a wind or solar farm, to the buyer – the industrial company concerned.
Either the supply of electricity passes through a direct line without use of the public network (on site), or through the general supply network (off-site). On the other hand, there is no effective supply of electricity for virtual PPAs. On the contrary, both parties buy or sell the contractually agreed amounts of electricity on the spot markets, i.e. on the stock market, by compensating for the difference between the individually agreed price of electricity and the market price obtained between the parties.
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