In some countries, air-mining contracts are already being used to finance the construction (investment costs) and operation (operating costs) of renewable energy facilities. Countries that need utilities or want to cover part of their electricity supply from renewable energy sources are particularly attracted to AAEs. The agreements are an alternative for the development of renewable energy in areas where policies are reluctant to promote the development of renewable energy (and subsidies). When a statutory subsidy to an existing plant expires, AAEs are a means of providing follow-up funding for the operation of the facility. This could include operating costs such as maintenance and leasing. Depending on the regulation and market environment, different situations may occur, in which AAEs are a favourable form of financing or a stabilizing factor in long-term delivery. Synthetic AAEs decouple the physical flow of electricity from the financial flow. This will further increase the flexibility of contractual agreements. With respect to synthetic chaining contracts (also known as sPPAs), producers and consumers agree on a price per kilowatt-hour of electricity, as does a physical AAE. However, electricity is not delivered directly to the consumer from the power generation facility. Instead, the producer`s energy service provider (for example. B an electricity distributor) takes the electricity generated in its clearing group and acts (in the short-term electricity markets, to cite an example).
The consumer`s energy supplier (for example. B, a municipal plant) obtains exactly the power profile that the manufacturer makes available to its energy service provider on behalf of the PPA consumer partner, the purchase being made on a platform such as the spot market. In the synthetic AAE, this flow of electricity is now supplemented by what is called a differential contract. In this contract, the AAEs parties aim to compensate for the difference between the agreed price of AAEs and the actual spot market price. This means that each counterparty in the AEA has two cash flows: one with the energy service provider concerned and the other with the AAE contractor. In any event, the payments add up to the price of the AAEs set at the beginning and offer both parties the desired price guarantee. Without direct physical delivery between the contracting parties (such as an AAE on site) and without a direct link between them (such as an off-site AAE), this is a simple and administratively economical AAE. It is well suited to cases where a producer does not create or does not wish to create its own balance sheet group, to cite an example.
The benefits of an electricity purchase contract include long-term price security, the ability to finance investments in new power generation capacity, or the reduction of risks associated with electricity sales and purchases. In addition, a specific physical diet can be provided with certain regional characteristics and certain original guarantees. Customers can take this opportunity to make their brand more sustainable and greener. The open end of the proposed contract also creates a great deal of leeway to reflect the preferences of facility operators and electricity consumers. The same applies to pricing: AAEs can be signed at a fixed price or allow for increased participation in risks and market opportunities. Electricity producers enter into AAEs either bilaterally with a consumer company (“Corporate PPA”) or with an electricity distributor who purchases the electricity generated (“Merchant PPA”). The electricity distributor can continue to supply electricity to an electricity consumer (transform it again into a “corporate PPA”) or to negotiate electricity on an electricity exchange. Many international groups are already buying shares in their electricity consumption via AAAs or have announced their intention to do so more frequently (see there100.org/re100).