Operating diagram of a PPA (Power Purchase Agreement)

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.