Power Purchase Agreement (PPA) – What is that?

PPAs offer many benefits for both electricity generators and consumers. For generators, they provide a stable source of income over a long period of time, thus contributing to the financing and operation of power generation facilities, such as wind farms. Consumers, on the other hand, benefit from fixed electricity prices, which can be particularly important during times of high energy price fluctuations.

A key element of Power Purchase Agreements is their independence from government incentive programmes such as the EEG surcharge. This makes them a stable instrument in a changing political and economic environment. Due to this flexibility, PPAs are particularly attractive for financing projects in the field of renewable energies, such as the construction of wind and solar energy facilities.

So far, only a small portion of renewable electricity is sold via Power Purchase Agreements. However, PPAs are increasingly gaining importance as more countries and companies recognise the urgency of transitioning to renewable energy and expanding renewable resources. In regions with strong growth in renewable energy such as Europe and North America, PPAs could potentially serve as key instruments in achieving energy and climate goals in the future.

Energy cooperative Prokon is one of the pioneers in this process. We exclusively market the electricity generated by our Finnish wind farms through PPAs, and more and more electricity generated in Germany is also marketed this way. True green energy also requires the continuous construction of new renewable energy facilities to ensure long-term "green" energy supply in Germany. We also believe that the most important element of the energy transition is the green electricity generation itself. Therefore, we feed into the German power grid at least as much electricity from our own wind farms as our customers consume. This is not just a promise - it is our commitment!