Heat Purchase Agreement

In an agreement from Purchase Thermal Energy (TEPA), a separate company finances and owns the solar installation and then sells the heat to you, the end consumer. This way, you can run your business without problems or notice for operation or long-term maintenance and operation work, while enjoying all the benefits of solar energy, including predictable long-term heat savings. The above-mentioned ECA should be distinguished from contracts for the receipt of electricity in a deregulated electricity market, which are generally power purchase agreements with a private producer whose plant is already in existence or where the plant is built at the initiative of the private producer. For examples of this type of ECA, click on the following links: Edison Electric Institute Master Power Purchase & Sale Agreement (PDF) (4/25/2000) and Tri-State AA. We can offer these solar technology and energy design services as part of our design capabilities. We can also work with other design professionals and developers to provide inexpensive solar heating systems. In some countries, power purchase agreements are already used to finance the construction (investment costs) and operation (operating costs) of renewable energy installations. Countries where utilities are needed or who want to cover part of their renewable energy supply are particularly attracted to EPAs. These agreements are an alternative to the development of renewable energy in areas where politicians are reluctant to promote the development of renewable energy (and subsidies).

The benefits of a power purchase agreement include long-term price security, opportunities to finance investments in new power generation capacity, or reduced risks associated with electricity sales and purchases. In addition, a specific supply of physical electricity can be made with certain regional specificities and guarantees of origin. Customers can seize this opportunity to make their brand more sustainable and greener. The opening of the contract also offers a great deal of leeway to reflect the preferences of different electricity operators and consumers. This also applies to pricing: PDOs can be signed at fixed prices or allow greater participation in market risks and opportunities. Why thermal power purchase agreements that consume large amounts of hot water finance their large solar installations with proven financing vehicles such as capital budgets, long-term debt, municipal bonds, bank loans, etc. .


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