Off-site Corporate Power Purchase Agreements (PPA)

Sirius specialises in facilitating Off-Site Corporate PPAs where carbon conscious public and private businesses are seeking to contract with renewable energy generators. Our network of Solar & Wind Developers, allows us to understand which renewable asset is best suited to the aims of their business and what pricing is available under current market conditions.

By understanding your total electricity consumption and sustainability goals, we are able to match your load profile with a solar or wind farm (sometimes both) to allow businesses to procure clean energy consistent with your energy consumption.

There are two main types of Offsite Corporate PPAs:

1. Synthetic PPA

Key features of a “financial” PPA

  • Direct contract with wind/solar farm
  • No link to the utility bill or physical consumption
  • Variable volume (linked to production)
  • Priced as a swap (pay fixed price, receive floating price)
  • Generally > 10-year tenor
  • Transaction costs can be lower by avoiding negotiations with retailers and integration of retail contracts across sites
  • Used by Developer to raise finance
  • Source of Large Generation Certificates (LGCs)

2. Sleeved PPA

  • Indirect contract with wind/solar farm via retailer
  • Linked to utility bill & physical consumption
  • Variable volume (linked to production)
  • Priced as a swap (pay fixed price, receive floating price)
  • Shorter-terms available – 7-years and potentially less
  • Simpler for organisations with less energy market expertise
  • Accounting treatment can be easier – definitely not a derivative
  • Used by Developer to raise finance
  • Source of Large Generation Certificates (LGCs)

Solar Tender Management

Whether it be a ground mount PV system or a roof-mounted solution, Sirius will run a comprehensive tender on your behalf using our vast network or Tier 1 and quality installers. Our experience includes working with ASX 200 & Top 500 private companies to help them achieve optimal outcomes and best project returns and carbon offset targets.

As part of our due diligence we will provide and/or examine:

  • Size the system utilising a year’s worth of interval data and recent electricity bills
  • Model Return on Investment (ROI) by providing key financial metrics such as Payback Years, IRR, LCOE and NPV
  • Validate Yield data and generation profiles
  • Confirm accurate government subsidies (STCs/LGCs)
  • Explore Battery Energy Storage (BESS) options
  • Examine proposed technology in terms of PV modules, Balance of System (BOS), Mounting, Inverters, and Energy Storage Systems.
  • Validate that proposals are in line with current market pricing
  • Assist with contracting and project delivery

Our consultants have excellent knowledge of ‘behind the meter’ solar applications and can assist with any commercial industry segment.