ENGIE signs a new Power Purchase Agreement with a local authority in France
In the East of France, the Departmental Council of “Meurthe-et-Moselle” (which rules an area of 7,00 000+ people) has decided to supply its whole real estate properties, including the middle schools buildings, with renewable energy. More than 100 premises have access to 100% green energy, which will be locally produced by a wind farm from 2021.
The Power Purchase Agreement (PPA) signed between ENGIE and the Departmental Council is a first time for a territorial community in France.
A PPA is long or short-term arrangement between a renewable asset owner – seller - and a power consumer - buyer, here a local authority but it could also be a corporate. The buyer purchases the asset's electric output for a predetermined period and price. It’s a wide-spread contractual mechanism matching the large consumers’ increasing demand for green power. PPAs enable the buyer to purchase power from renewable energy generators and help them to reduce their carbon footprint and energy costs, making them instrumental to support ENGIE’s clients through their energy transition.
In the face of a growing demand for renewables, ENGIE’s global energy management teams answer both producers et consumers’ needs, by managing risk allocation between upstream and downstream stakeholders, onboarding part of the risks or mitigating them through first-class hedging strategies.
Additionally, as renewable energy is subject to climatic variations, the teams forecast the assets’ production, in order to have precise view of its output, mitigate weather risks and help consumers to reach their sustainable goals.