What is a corporate PPA?
A corporate Power Purchase Agreement (PPA) is a long-term contract between a power producer and a consumer for renewable energy-derived electricity and its associated environmental value, or for the environmental value alone. Recently, corporate PPAs have been gaining traction in Japan as a means for consumers to procure a stable, long-term supply of renewable energy.
The Cosmo Energy Group aims to achieve net zero carbon emissions by 2050.
*Power producer: A corporation or entity engaged in the business of selling generated electricity
*Consumer: A corporation or entity seeking a stable supply of electricity and/or its associated environmental value
COSMO’s Proactive Pursuit of PPAs
Aiming to realize a carbon-neutral society in collaboration with consumers, the Cosmo Energy Group is committed to exploring corporate PPAs not only for its existing wind farms but also for wind power plants scheduled to commence operations in the future.
Benefits of Corporate PPAs for Plant Operators and the Global Environment
Corporate PPAs Ensure the Business Sustainability of Both Power Producers and Consumers
Stabilization of Procurement and Supply Conditions
Corporate PPAs guarantee the stable supply of electricity over the long term by determining terms and conditions in long-term contracts between consumers and power producers for renewable energy-derived electricity. In addition, they enable electricity costs to be kept under control by shielding them from fluctuations in fossil fuel prices.
Corporate PPAs are Beneficial for Both the Planet and Corporations
Contribution to the Global Environment
The electricity supplied under the Cosmo Energy Group's corporate PPAs is generated from renewable energy. Long-term procurement of renewable energy also helps maintain the global environment as the world seeks to achieve net zero carbon emissions.
Group company Cosmo Eco Power Co., Ltd. is engaged in the long-term supply of renewable energy generated at wind farms through corporate PPAs.
Physical PPA
Under a physical PPA, the consumer purchases electricity and its associated environmental value as a package at a fixed price from a remotely located power generation facility.

Virtual PPA (Payment of Difference)
In a virtual PPA, the consumer purchases the environmental value of generated electricity, while the power producer sells electricity on the wholesale market. The consumer then pays the difference between the fixed contract price and the market price.

*Physical PPA and virtual PPA diagrams were created with reference to the Renewable Energy Institute’s Corporate PPA Guidebook.
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