World Energy Efficiency Day: Experts Say Introduction of PPAs Will Help Corporations Reduce Carbon Footprint & Save Electricity Costs
March 5, 2019: World Energy Efficiency Day, March 5th, saw Sun Investment Group, one of the largest portfolio holders of solar energy in Poland, call for the wider use of photovoltaic power by corporates via on-site Power Purchase Agreements (PPA) in order to facilitate Europe’s 2020 and 2030 renewable energy transition goals.
A PPA is a long-term partnership agreement to purchase electricity, which due to the lifelong guarantee of solar panels, usually lasts between 20 – 25 years. The majority of power sources for PPAs are renewable based, and according to renewable energy experts, the most popular form of PPA is either wind or solar power.
At present, PPAs now comprise just 8% of the global renewable energy market. Yet with the European Union’s 2020 renewable energy directives coming into effect in 2020 and 2030, the corporate adoption of on-site PPAs is now viewed as one solution to help EU member states that are currently trailing their energy targets to meet them over the next 12 months.
An on-site PPA is connected with a corporate facility’s internal electricity system, and makes the premises fully self-sustainable for a few hours each day during summer, when the installation’s solar panels are at full capacity.
The self-reliance of an onsite PPA is also expected to significantly contribute to the reduction of a corporate carbon footprint by using the energy its PV panels harvests to power the facility and take it between 5% – 30% “off-grid” for part or all of the day. Based on figures produced by SIG’s estimates, an on- corporationwould also be able to save around 20% of its annual electricity costs via an on-site PPA arrangement as a result of its self-sustainability.
SIG has a proven track record in helping EU businesses make the transition to renewables.
The most recent effort came in February 2019, when SIG and its Lithuanian/Spanish partner company, I+D Energias, paved the way for the installation of corporate installations in the Baltic States. It became the first company to install a 1.4 megawatt solar panel installation on the rooftop of the RETAL factory 10 kilometres from Vilnius, the capital of Lithuania, as part of the latter’s corporate responsibility drive and commitment to a renewable-powered future.
SIG’s International Business Development Manager, Karolis Proscevičius, has more than five years of experience in implementing on-site PPA projects across Europe, and over 10MW of the onsite PPAs in the Baltic region, and according to him: “World Energy Efficiency Day is a good day to remind corporates of what can be done when on-site PPAs are adopted. In addition to assisting with a region’s energy transition period due to their reduced emissions,” he continued, “their wider implementation will also lead to improved corporate responsibility as we have seen with the RETAL plant, which is the largest rooftop solar installation in the Baltic States.”
In terms of on-site PPA agreements, it is up to companies such as Sun Investment Group and others to explain and demonstrate their effectiveness as a long-term business investment in terms of cost, effectiveness, and improved corporate responsibility.
ABOUT SUN INVESTMENT GROUP
Sun Investment Group (SIG) was founded in 2011 as an investment management and development company focused on solar energy assets within investment-grade markets. It has extensive experience in developing solar power projects across Europe. SIG is one of the biggest solar PV players in Central-Eastern Europe region. Most recent project was developed and is under construction in Poland with a cumulative power of 42,36 MWp, approximately 15% of the country’s total market. Other key operational markets include Spain, Hungary, and Italy. https://suninvestmentgroup.com.