Power Purchase Agreements

With a power purchase agreement (PPA), commercial, industrial, institutional and government organizations can find ways to monetize operations that traditionally have been cost centers, while independent energy suppliers can find a route to capital.

Businesses and municipalities often take too narrow a view when considering renewable energy options, focusing only on how to meet their immediate needs. By partnering with Ameresco, one of the largest independent energy efficiency companies and energy service providers, the full value of existing assets can be tapped, from using a solar power purchase agreement that can turn rooftops into energy systems to tapping the power of landfill-gas-to-energy and biomass to generate power from waste disposal. We can design, build, operate and maintain these facilities, allowing our customers to benefit from stable and reduced utility costs and to gain a new source of revenue without adding to below-line expenses.

Monetizing Assets with a Power Purchase Agreement
Commercial, industrial and municipal organizations may be overlooking potential sources of revenue. A power purchase agreement (PPA) can be used to mitigate costs, fund renewable energy development, lower overall utility costs and generate working capital.

By entering into a long-term contract with a power supplier, organizations can monetize landfills, waste treatment operations, remote pieces of land, roofs and parking lots. A PPA provides a reliable source of revenue for the length of the contract, and federal tax credits coupled with a solar power purchase agreement can make the resulting power competitively priced on the open market.


A landfill-gas-to-energy plant

FEATURED CASE STUDY:
RAPPAHANNOCK REGIONAL LANDFILL

In 2006, the Rappahannock Regional Solid Waste Management Board (R-Board) in Virginia partnered with Ameresco to develop a 20-year power purchase agreement that converts landfill gas to energy. Two generators built at the landfill capture methane gas and convert it to electricity, generating 2.14 megawatts of energy, enough to power 1,500 homes. Over the term of the contract, the R-Board will receive an estimated $1.6 million for selling power from the facility to Constellation New Energy.

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