Physical PPA (P-PPA)

The corporate agrees to purchase power through the Alberta Electric System Operator from the renewable project and use that power to reduce direct consumption purchased from the grid.


1. Off-Site Development

Renewable project and buyer are geographically separated but tied physically through the electric grid.

2. Direct Billing

The buyer must manage the physical delivery of renewable power alongside delivery of non-renewable sources from the electric grid sold by electricity retailers.

3. Grid Exposure

The buyer will have to manage exposure to grid-sourced electricity.

4. Moderate Offset Potential

The buyer can only procure renewables to meet daytime demand and will not be able to fully offset grid-sourced electricity purchases with renewable electricity purchases.

Settlement Mechanics


Fixed Price Contract + Wholesale Electricity Cost = Contract Settlement Cost

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