MODEL CONTRACT: PPA model contract for fixed quantity price planning

Power purchase agreements (PPAs) enable companies to purchase renewable energy directly from the producer on a long-term basis and at a price agreed in advance. This offers them the opportunity to minimise price risks and at the same time drive forward the decarbonisation of their value chain. However, concluding direct electricity supply contracts is currently a major challenge, particularly for smaller companies and municipal utilities, due to a lack of personnel capacity and expertise.

The model contract acts as a template making it possible to conclude a supply contract even without in-depth knowledge of PPA contract types and electricity market effects, as well as gaining initial insights into the contract structures. The specifics of German law and electricity trading are taken into account and a fixed quantity price planning is assumed. It should be mentioned at this point that this model contract should be adapted to the individual case and should not be used as a basis for direct green electricity procurement without in-depth knowledge or expert advice. 

This model contract represents a decisive first step with the aim of supporting the standardisation of direct electricity supply contracts and accompanying the market ramp-up. Nevertheless, standardisation is a continuous development process and will have to be extended and specified for other delivery profiles in the future.