Increased Appetite in Power Purchase Agreements

As the availability for viable grid connections become increasingly scarce, opportunities around private wire projects, known as Power Purchase Agreements (PPA’s) are becoming increasingly more interesting for landowners, high energy users and developers.

Projects can range from 500kW (circa 1.5 acres) to 20MW (circa 60 acres) and can be solar and battery or just solar. Many are also looking to utilise wind as this has higher output per MW installed but is much harder to obtain planning approval.

At HK&Co we work with developers that are driving this industry forward with projects progressing across the country.

PPA projects are a great way for landowners to progress renewable projects even if there is no grid available. The key factor is the need to have a high energy user within close proximity of land that is viable in planning terms.
The driver for PPA projects is that the off-taker can access power below normal retail power prices and the developer can sell above the wholesale export price.

Likewise some high demand energy users who have their own land can seize this opportunity. If they partner with a PPA developer, the developer can handle all planning risk, funding, build-out and operational maintenance and provide to the customer a private supply of cheap power. Pension funds are keen to invest in this relative passive form of investment and we foresee a significant roll out of PPA’s over the coming years.