PPA
In this section you can specify the parameters of the project in PPA modality.
Types
You can choose how to define the PPA based on your needs:
No PPA: In case you don't want to show the PPA option to your client.
PPA based on target IRR: To calculate the PPA price based on a target Internal Rate of Return (IRR).
PPA based on fixed price: To specify the PPA price directly.
Parameters
Target IRR: If you select a PPA based on target IRR, you can define the value of the Internal Rate of Return (%) you want to achieve with the project. The platform will automatically undergo an optimization process to reach the minimum PPA price that guarantees this IRR.
Price per MWh: If you select a PPA based on fixed price, you can define the fixed price of the PPA in currency per MWh.
Duration: The duration of the purchase agreement, in years.
Installation Cost: The initial startup investment (EPC) considered in the PPA cash flows. Here you can choose between two options:
Based on the EPC selling price (with margin) to assume an initial investment equivalent to the selling price in EPC modality, including the gross margin.
Based on the EPC cost (without margin) to assume an initial investment equivalent to the material and startup costs in EPC modality, excluding the gross margin.
Broker upfront commission: Initial payment in the form of a commission to the broker, in currency per kWp.
Broker recurrent commission: Recurring payment to the broker during the PPA contract duration, in currency per MWh.
Licenses: Cost of licenses expressed as a percentage of the project's installation cost.
Annual Price Increase: Optionally, you can define an annual increase or decrease in the contract price.
INFO
If you make hundreds of commercial proposals each year in PPA modality, you may be interested in automating the process as much as possible. In these cases, you can request the integration of your own financial models into the platform, that will be automatically executed in each simulation, ensuring maximum accuracy and speed. 🚀