What is a PPA?

A renewable PPA (Power Purchase Agreement) is a long-term contract between a producer and a consumer or between a consumer and a supplier.
It sets power purchase prices and volumes delivery conditions.

Types of PPAS

On-site PPA

An on-site PPA is a contract for the supply of electricity from an ad hoc renewable plant located on the customer’s property and connected to its internal network. The renewable developer makes the investment and designs, installs, operates and maintains the plant. Afterwards, the developer sells the produced energy to the customer.

Off-site PPA

An off-site PPA is a contract associated with a renewable plant, which is connected to the transmission or distribution network of a country to take energy from its point of origin to the consumption point.

Based on how the energy is delievered

Physical PPAS

Basic content of the PPA contract: this includes how much energy is supplied, duration of the contract, price, measure and point of delivery of the energy and the guarantees established for cases of non-payment risk, regulatory changes, potential price review formulae, penalties regime and contract termination regime. Deviations must also be regularized.

Financial PPAS

Financial PPAs are Contracts for Differences (CfDs) settlements, with a fundamentally financial content. The main content focuses on settlements and how these are made; also, what to do if there are any discrepancies. Normally, they do not focus on a specific installation, or physical or regulatory aspects of the electrical system. However, as they are linked to the state of the electricity market, it is necessary to establish a clause for any potential change of law and resulting causes and consequences of early resolution.

Based on how much energy is delivered

Baseload PPA

The customer consumes the gross generation from the plant. This is the most competitive product when it comes to price; however, it is also the riskiest product for the customer as generation from renewable sources is not predictable.

As-generated PPA

The renewable developer converts the gross generation from the plant into a baseload product. This is the most common product among customers, as there is an interesting balance between cost and risk. However, not all developers are able to offer this type of PPA

As-consumed PPA

The renewable developer converts the gross generation into a curve which faithfully mirrors the customer consumption curve. This is the most common product among non-expert customers as this is the product in which the developer gives most added value to the customer. Only companies with a large generation portfolio can compete for this type of PPA.

Outlook: European context

In May 2022, the Commission proposed a series of measures in its REPowerEU package to achieve three key objectives: saving energy, producing clean energy and diversifying the EU’s energy supply sources.

In early 2023, the Commission launched a public consultation to study the reform of the electricity market. Member States submitted various proposals. However, all insisted on the need for a more reliable, stable and predictable market to encourage massive investments in renewable energy. Instruments such as PPAs are promoted to achieve the double objective of price stabilisation and development of renewable energies.


'' Renewables Power Purchase Agreements are expected to become a major driver in the coming years '' HES.


2022 was a historic year in the energy sector, marked by a triple crisis (gas supply disruptions, unavailability of the French nuclear fleet and shortages of hydroelectric production).

However, the number and volume of PPAs signed remained in continuity with the growth of the previous five years. For the fourth consecutive year,

Spain occupied the first place, with 3.2 GW of PPAs signed

The two main sectors that signed PPAs were IT and heavy industry (Metalury & Mining).

Contracted Capacity in PPAs per Sector (as of March 2023). Source: RE-Source European platform for corporate renewable energy sourcing

Regulation in the European Union

The Council adopted its stance (overall strategy) with regard to a proposal for legislation to ensure the integrity and openness of the wholesale energy market (REMIT). By outlawing trading based on insider information and discouraging market manipulation, the plan seeks to support a free and open market for wholesale energy in Europe.

The remaining components of the reform, which seek to reduce the dependence of electricity prices on unpredictable fossil fuel prices, safeguard consumers from price spikes, hasten the deployment of renewable energies, and enhance consumer protection, will be decided later.

Optimal support conditions include: i) a growing market of renewable energy projects, ii) high liquidity of power futures, thus enabling long-term hedging, iii) simplified procedures enabling the signature of direct contracts between consumers and clients and iv) public tenders that are compatible with corporate PPAs.

"The current electricity market design has delivered an efficient, well integrated market over many decades, but tight global supply and Russia’s manipulation of our energy markets has left many consumers facing massive increases in their energy bills. We are today proposing measures that will enhance the stability and predictability of energy costs across the EU. Driving investment in renewables will help us reach our Green Deal goals and make the EU the powerhouse of clean energy for the coming decades."

PPAS advantages


PPAs offer an alternative way to finance the deployment of renewables.

Trading companies

Renewable PPAs are a guarantee of stable and expected revenues over along period of time;  possibility to finance their projects and installations

Renewable energy project developers

PPAs are an alternative and/or complementary source of stable income compared to public support schemes or commercial markets.

Consumer companies

  • Electricity supply costs are fixed for a long-term period

  • Risk of volatility associated to the electricity market price is

  • Green energy consumption is proven by certifying GOs
    (Guarantees of Origin)

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Profesional Experience & Education

Diego graduated in Political Economy at King’s College University (London – 2021). He started his professional career in a family business in Madrid as an operations manager. Diego then studied a Master in Management and Master in Computer Science at IE University (Madrid – 2022), during which he participated as an Information Technology (IT) intern in a startup. In May 2023, Diego joined the HES team as an intern specialised in programming models. In his first project, he developed a software tool for modelling the unavailability of the French nuclear fleet. Afterwards, Diego has also participated in the development of new software tools for modelling price curves, generation asset performance and other topics related to the energy market. 

Diego Marroquin

Junior Consultant

Diego Marroquín

Profesional Experience

Céline joined Haya Energy Solutions in November 2021 as marketing and administration manager. She had a first professional experience in the tourism sector as a social media manager. At HES, her activities are focused on the development of the company’s visibility at European level through: commercial actions, content marketing and development of brand strategy. Céline is also involved in the management of the company’s communication: optimisation of the website (WordPress & Elementor), LinkedIn, publication of the monthly newsletter and the organisation of conferences. Céline participates in energy projects with the clients and acts as coordinator and project manager. Finally, she is in charge of administration (accounting, expenses management, invoicing).   


Céline graduated in Spanish and English Philology at La Sorbonne (France – 2018) and holds a Master’s degree in Project Management and Cultural Tourism (Clermont-Ferrand/ Buenos Aires – 2021). 

Céline Haya Sauvage

Marketing Responsible

Céline Sauvage

Investment Advice

“Decarbonization of the Energy and Transport sectors is arguably today’s main economic driver for the industry.”

Profesional Experience

His career started in civil engineering as a Project Manager in France, Martinique and Australia. Afterwards, he became the General Manager of a subsidiary in Venezuela. In 1992, he established Dalkia in Germany (district heating, cogeneration, and partnerships) and represented Véolia in Thailand. In 2000, he opened the commercial office of Endesa in France to take advantage of the liberalized retail market. From 2006, as a development Manager at Endesa France, he led Endesa’s plan for Combined Cycle generation in France and developed the wind and PV portfolio of Snet at the same time. Philippe Boulanger worked for 3 years at E.ON’s headquarters coordinating the company´s activities in France. He was strongly involved in the French hydro concession renewal project. As a Senior Vice President – Project Director at Solvay Energy Services from April 2012 to February 2014 he was in charge of the H2/Power to gas and European direct market access deployment projects. Philippe has been an HES expert since 2014.


Philippe Boulanger holds engineering degrees both from the Ecole Polytechnique and the Ecole Nationale des Ponts & Chaussées (France) and has a combined experience of more than 25 years in energy and infrastructure. In addition to English, Mr. Boulanger is fluent in French, German & Spanish.

Philippe Boulanger

Electricity Expert


“The world is changing. New investors pay particular attention to the energy sector while historical actors adapt their position to the market.”

Profesional Experience

Antonio started his career in the electricity sector in 1991 working as a member of the General Manager’s team at Sevillana de Electricidad (Spain). In 1997, he was appointed head of commercial regulation at Endesa Distribución. In 2000, he joined the mergers and acquisitions (M&A) department of Endesa Europe. He was appointed Managing Director of Endesa Power Trading Ltd (UK) in 2003. A year later, he became responsible for energy management at SNET (France). In 2008, he was appointed Managing Director of SNET (France). In 2009, he became Director of Corporate Development at E.ON France. In 2011, he founded Haya Energy Solutions (HES), a consulting firm focused on optimising the energy management of consumers, producers and retailers of gas and electricity. From 2015 to 2018, Antonio combined the consulting activity at HES with the general management of 2 production facilities in France (2 CCGTs x 410MW), owned by KKR. At the end of 2018, he joined Asterion Industrial Partners, an infrastructure investment fund, as an operating partner. Antonio currently devotes most of his efforts to the Asterion Portfolio, while advising through HES companies in the energy sector in France, Italy, Germany, UK and Spain. 


Antonio graduated from the Escuela Técnica Superior de Ingenieros of Seville (Spain) and holds an MBA degree from Deusto University (Spain). 

Antonio Haya