Operating diagram of a PPA (Power Purchase Agreement)
03/04/2026
The electricity produced by the solar or wind farm is injected into the public grid. Meanwhile, the company continues to be supplied through that same grid, as with any standard contract. The link between producer and buyer is therefore primarily contractual and financial.
A PPA operates through three complementary flows:
- Physical flow: renewable electricity is injected into the grid.
- Contractual and financial flow: the buyer commits to remunerating this production under the terms defined in the contract.
- Environmental flow: the Guarantees of Origin (GoOs) associated with the production are transferred to the buyer, enabling certification of the renewable share of its consumption.
TotalEnergies
Physical Flow
- Renewable electricity production: TotalEnergies feeds renewable electricity generated by its solar and wind farms into the grid.
- Supply: the customer company obtains its electricity supply via its local grid.
Environmental Flow
- Guarantees of origin: TotalEnergies provides the customer company with guarantees of origin certifying that the electricity fed into the grid is indeed from renewable sources.
Contractual and Financial Flow
- Contract (PPA): TotalEnergies and the client company sign a contract (the PPA). The buyer agrees to pay for TotalEnergies' renewable production according to the terms of the contract.
[TotalEnergies logo]