Corporate Power Purchase Agreement: formulation of the related levelized cost of energy and its application to a real life case studyCorporate Power Purchase Agreement • July 18th, 2019
Contract Type FiledJuly 18th, 2019Abstract - For corporate and industries the reducing of its environmental footprint is becoming more and more important, in order to improve the ‘green and social brand’ of their products and services. Many instruments may be used to this purpose but in recent years Corporate Power Purchase Agreement (CPPA) is the form of contract that is used more and more frequently. CPPA is a contract between an energy producer, from renewable sources and an end-user. Using CPPAs, the ‘green brand’ for a corporation and its product and services could be achieved. The main concern is related to the costs: still today, renewables are more expensive with respect to fossil fuels, therefore this results in higher prices for products and services, so a fair trade off between CPPA price and the gain of ‘green brand’ has to be determined. In this paper, the authors propose a method based on an opportune Levelized cost of energy formula able to support a stakeholder to define CPPA price and contractual lengt