As a result, Europe entered a new era of unsubsidized, market-based renewables growth in which market integration, risk management, and energy trading are key capabilities. This era fits with Uniper’s strengths. We’re leveraging these strengths primarily in two ways: via power-purchase agreements and our own solar and wind projects.
With subsidies dwindling, renewables developers are increasingly turning to power-purchase agreements (PPAs). Under a PPA, Uniper or another counterparty agrees to buy a percentage of a wind or solar farm’s future output for a set period (typically 10 or 15 years) at a set price. PPAs are a win-win: they give us access to more green power and give developers the financial security to fill a field with wind turbines or solar panels. We have PPAs with wind and solar farms in Europe and North America and intend to conclude many more.
Farms of our own
PPAs demonstrate that we can benefit from renewables without actually owning them. But we also believe that in the current market environment it makes sense to build some ourselves. This will give us access to the value created during the development and construction phases. This value can be monetized by selling completed assets to investors or internalized by keeping them.