Sleeved/Physical PPAs – Companies are able to purchase renewable energy from third parties through Green CPPs, among which companies enter into an electricity purchase agreement (AAE) with a renewable energy generator. For example, under such an AAE, the alternator provides the company at a fixed price of green electricity for a certain long-term period (sometimes subject to an agreed annual escalation). Under this structure, electricity is physically transmitted from the generator to the customer, although the transaction with a socket sometimes involves an external supplier who provides the sleeving service in addition to the traditional power supply function. Standardization – Because CPPAs vary in structure and length and most debt structures for projects are more than 10 years old, most companies and energy management experts have an obligation to simultaneously trap energy costs at five or seven years, making it difficult to find a middle ground in negotiations. Standardizing a CPPA form could create common ground in negotiations to help intermediation of these companies. [21] The European Federation of Energy Traders (EFET) has set up a standard CPPA for physical and financial PPAs, with an approach to the electoral sheet to adapt the agreement. This is the first standard CPPA applicable to all European countries to reduce transaction costs and facilitate the negotiation process. [22] EFET found that its standard CPPA is supported by important legal opinions and translated from English to other EU languages in order to promote admission throughout Europe. [23] The company continues to source electricity at a certain delivery point where the company`s charging centre (i.e. the needs centre) (usually the company`s local network) is located.

Such purchases are not processed in the VPPA. In parallel to this agreement, the purchaser of the company will have in many legal systems a contract to supply electricity with this licensed supplier, under which it will be possible to provide electricity to cover the company`s energy needs from time to time. The terms of delivery under this delivery agreement take into account electricity purchased under the AEA, which is transmitted to the supplier granted under the authorized supply contract. This ensures that the company will benefit from fixed renewable energy prices under the AAE, but the reliability of a supply agreement with a licensed electricity supplier to cover its daily energy needs.