Chp Power Purchase Agreement

By 5. Dezember 2020Allgemein
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The most obvious benefit of an AAE for your business is to generate additional revenue. Selling your electricity to utility companies offers additional revenue that might otherwise be wasted, especially if your company produces excess electricity At its Regency Saugus Center in Massachusetts, the national owner of the Regency Centers retail center partnered with tenant Trader Joe to install a 253 KW solar installation on the roof. Regency Centers owns the solar facility and sells the solar generated at a discount to Joe Traders, which reduces about 65% of their total electricity consumption with clean electricity. Individuals who sell to an electricity company will generally generate their electricity from renewable sources, mostly from solar, biomass or wind energy. It is also an attractive and beneficial source of energy for utilities that want to reduce the carbon footprint of their supply. Under an AAE, the customer signs a contract with a third-party developer to purchase electricity generated by solar panels, wind turbines, cogeneration facilities or other forms of energy generation on or near the roof of a facility. Therefore, the client is also designated as a buyer or buyer of the power. While the client often provides the physical space to host the system, this is not a requirement and the host and client/client may be separate entities in the rented premises. The developer and its investors own the equipment for the duration of the AAE. The developer typically offers the first project coordination services, such as bridge financing, design and approval, with little or no cost to the client. The installation of the devices can be done by the developer or by an installer mandated in his own home. The distribution company that serves the customer provides a connection between the power system and the power grid and will continue to operate if the system does not produce enough electricity to meet the customer`s electrical needs.

If the system produces excess electricity, it can be sold to the distribution company, usually at the price of electricity in the retail trade.

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