Power Purchase Agreement Case Study
These materials are designed to help federal managers and others learn how to use Power Purchase Agreements (PPAs) to easily and affordably procure renewable energy for their organizations.
U.S. Federal Government Goal: E.O. 13693 requires federal agencies to gradually increase their use of renewable energy until it accounts for 30 percent of total building electricity use by fiscal year 2025. While the Executive Order encourages agencies to maximize the use of onsite renewable energy generation, agencies have found that it can make more economic and technical sense to achieve those targets by utilizing financing models such as power purchase agreements (PPA).“The PPA model is a very useful tool for procurement of renewable energy, and allows developers to do what they do best: Provide turn-key solutions that include full system and financial arrangements, which simplify the purchase for the end user… the beauty of the PPA model is that there are no upfront capital costs.” — Todd Foley, Chief Operating Officer, American Council on Renewable energy