As companies work to fill the ambition gap, they are increasingly turning to PPs to advance their sustainable development goals. From 2009 to mid-2019, companies purchased more than 40 gigawatts of renewable energy through power purchase contracts in North and South America, Europe, Asia and Australia. Most were in North and South America. What does the agreement mean for the rest of the energy services market? Schneider Electric and Huck Capital confirm that the interactions between Les S-Grid will be the next mega-trend that shapes the energy management of companies. With lower local generation and electricity storage costs, a small but rapidly growing number of commercial businesses will update their energy programs to allow for more network interactions. They turn their buildings into “virtual power plants” that participate in the electricity market by buying and selling energy or participating in demand response (DR) programs. One of the pioneers of this approach is the Sello shopping centre in Finland, which generates 650,000 euros ($770,000) in annual revenue through participation in Fingrid DR programs, supported by Siemens Smart Infrastructure services. Schneider Electric and Huck Capital are taking advantage of the emerging corporate demand for PPA-funded solar projects. In these agreements, companies agree to source electricity from an energy services company as a means of financing the project, while protecting themselves against rising electricity prices and volatility. End-users also avoid paying the cost of capital in advance. In the UK, supermarket chain Tesco installs 5 MW of solar PV on the roof with a company PPA. In Australia, Blacktown City Council installs solar panels at 16 AAE-equipped sites.
In August 2020, Schneider Electric announced that it was working with investor Huck Capital to create a new company called “GreenStruxure,” which will provide energy service offerings for commercial buildings and industrial facilities. GreenStruxure will finance the installation of small solar power, storage and back-up micro-grids, with end-users paying for them through long-term mooring contracts (PPPs). Schneider Electric will oversee commissioning and day-to-day operations through its EcoStruxure software monitoring platform. The new proposal is aimed at operators of medium-to-large commercial buildings and local production systems of up to 5 MW. Ball Corporation has signed a 15-year virtual energy (VPPA) contract for 161 MW of the Frontier Windpower II project in Kay County, Okla. The total mobilization for the construction of Frontier II will take place this summer and the wind project will be fully operational by December 2020. A business AAE is a business or business, not a supplier or a public sector. AAEs play a key role in financing and developing electrical projects. Electricity is purchased by the purchaser at a pre-agreed unit price structure for a given period, which provides some cash flow to the project.