Power Purchase Agreement or PPA - if you pay attention to these three letters when purchasing energy for your real estate portfolio, you can kill not just two, but two birds with one stone. Especially when it comes to sustainability. We have summarized what these are for you here.
1. Climate-neutral Energy Included
Firstly, through effective climate protection in the short term, because the corresponding contracts always revolve around the purchase of completely CO2-neutral energy instead of fossil fuels. Switching to carbon-neutral energy is one of the most suitable "evergreen" measures in almost all cases in which we support owners in their sustainability transformation. This measure is therefore automatically included in PPA contracts.
2. Help Transform Energy Infrastructure
Further added value comes from long-term impulses for the further conversion of the energy infrastructure in Germany, as the PPA energy comes largely from a specifically selected local plant for renewable sources: Be it from a specific wind farm on the outskirts of the city or a photovoltaic system on the former landfill site on the outskirts of the city. Every property owner who obtains their energy directly in this way boosts local demand and thus implicitly also the construction of new renewable energy plants in this country. "The usual energy mix, on the other hand, can be a mix of countries without a clear allocation of origin," says Markus Hamacher, Managing Director of Westbridge Energy GmbH.
3. Energy Origin As An Occasion For Communication
Last but not least, knowing the specific origin of your own real estate energy is good material for storytelling in the sustainability report. This spreads the news within the real estate industry - because sustainability managers in real estate companies usually pay very close attention to which activities are communicated on the market. And good activities are emulated. That's how it is in pioneering roles.
If you would like to delve deeper into the topic of PPA, we would be happy to get to know you without obligation. We look forward to hearing from you. And the environment too.