Are Virtual Power Purchase Agreements a Borderless Corporate Energy Investment?
                     Are Virtual Power Purchase Agreements a 
Borderless Corporate Energy Investment?
Transactive power grids are overtaking the Energy sector, and PPAs are also transforming. 
Power purchase agreements or electricity generation agreements are contracts between 
two parties – the buyer and the one who generates & provides energy. 
PPAs guarantee long-term price security and advantages like low risks connected to the 
purchase and sale of electricity. Power Purchase agreement contacts can be signed at 
fixed rates or can allow for greater participation in market risks and opportunities.
The traditional corporate PPAs are like wholesale purchases in that they’re short-term as 
well as operation based. In traditional PPAs, there should be a fixed location, and the price 
in the contract is the sum of the energy developed and transported by developers. 
In PPAs, the developers get the guarantee that buyers will purchase the power generated 
by developers from renewable energy assets, and the buyers also get potential benefits. 
Mainly buyers create their good green portfolio to put forward their green agenda and 
reap financial perks from stable and fixed prices of renewable energies.
In virtual power purchase agreements, the case is different. These contacts are long-term. 
In VPPAs, also called synthetic PPA, as the name describes, there’s no physical exchange 
of energies like in conventional methods. The buyer signs an agreement with the 
developers for particular units of energy produced for a certain amount of time 
mentioned in the contract. 
The developers take those unit orders as per their capacity and generate power assets to 
trade in the wholesale market. The developers then sell these units in wholesale trading 
platforms like Indian Energy Exchange (IEX) limited. Virtual power purchase agreements 
cannot be completely defined as a direct energy transfer process but as essential financial 
agreements.
Economies around the globe are adapting to fast-forward changes, and VPPAs will 
conveniently change the renewable energy sector with enormous benefits. 
Corporates and Industrialists are the main contributors to the adaptation and 
development of renewable energy. These C&I consumers are looking forward to VPPAs as 
a borderless investment poised to accelerate soon! From big tech giants to newly 
established ventures, VPPAs are reforming investment & trading options for all the 
stakeholders interested in RE.
The prime reasons for defining VPPAs as a borderless, sustainable, and profitable 
investment for corporates and industries are its advantages over geographical 
limitations,
which make it completely virtual, aversion of risk due to aggregation, and fixed prices 
that ensure security to buyers from the volatility of the market. 
Renewable energy companies in India are exponentially advancing in renewable 
energy solutions and offering transitive virtual power plants to corporates as well as 
industrial customers.
The focus of leading global renewable energy solution providers in India, like AMP 
Energy India, is energy transition through their projects by decentralization, 
decarbonization, digitization, and democratization of energy. 
All the wind and solar companies in India that generate valuable power assets for 
trading in VPPAs will be highly valued in the coming decades as VPPs will enhance the 
flexibility and sustainability of repower. Modern technology will be rooted in the 
renewable energy sector, and VPPs are one of the pioneers of it in today’s time.
Thank You
Contact
Amp Energy India
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