Hybrid Procurement Contract for Smart Photovoltaic Energy Storage Containers

Are hybrid PPAs a viable solution to co-location?

PPAs | The co-location of renewable generation and energy storage demands new contractual arrangements to make such projects commercially viable. Jack Rankin, Miguel Valderrama and Brian Knowles of Pexapark explore how hybrid PPAs are becoming a favoured solution for structuring deals that capture the full value of both assets

Are hybrid PPAs a 'co-located' asset?

Jack Rankin, Miguel Valderrama and Brian Knowles of Pexapark explore how hybrid PPAs are becoming a favoured solution for structuring deals that capture the full value of both assets In the world of power infrastructure, we may broadly define “co-located” assets as those that share a single connection to the grid.

Will hybrid PPA contracting continue to grow?

In conclusion, we expect that gradually more and more markets will continue to devise mechanisms to stimulate flexibility additions, as this is indispensable in grids with a growing share of intermittent renewables; this in turn will favour the deployment of storage co-location, leading also to a growth in hybrid PPA contracting.

What is a hybrid PPA?

With a hybrid PPA, the idea is to get the best of the two worlds: potentially generate revenues through grid services, while improving the investment returns of the renewable asset. The first financial-benefits touchpoint of consider-ing co-locating a renewable asset with storage is the cost savings from the shared grid connection.