A physical purchase power agreement in Pensacola, FL can be made up of three different types, with some overlap between them, but they all work together. All three have a fixed amount of electricity sold and given in the PPA. The only different thing is how the electricity is brought in.
On-Site
This is a direct physical supply of electricity that requires the plant and the customer to be in the same place simultaneously. An on-site PPA means that the power plant is near the metering point of the customer or even at the same place. The type of use of the customer usually determines the type of installation and the parameters of the purchase power agreement in Pensacola, FL.
The grid operator is involved when residual electricity can be sent to the grid and used by other people. There is a direct link between the amount of electricity generated by an on-site PPA and a company’s consumption, so all on-site PPAs are corporate PPAs.
Off-Site
These do not form a direct physical link between the power plant and a consumer in terms of electricity. As defined in the PPA, it is just a contract to buy a certain amount of electricity and should be reviewed by lawyers such as Beggs & Lane.
In contrast to on-site PPAs, the electricity is sent to the customer through the public grid. This needs to be settled through the balancing groups of the electricity plant and the customer. The power plant doesn’t have to be close to the customer.
Sleeved
A sleeved PPA is essentially an off-site PPA in which an energy service provider has responsibility for various operations and works as a middleman between the producer and the customer.
