Renewable energy PPA comparison
With so much choice of renewables, and the finance packages, MaxGen will help steer businesses to the lowest cost PPA solution for the short, and long term. Most PPAs are index linked to CPI, providing a ratchet effect over time. These end up being much more expensive,
MaxGen works with zero index PPAs with fixed interest rates, currently at 8%, that are the same price throughout the term.
MaxGen works with a number of renewable energy providers and finance houses, and so is able to provide a range of renewable solutions to suit. The aim is to provide tier 1 solutions at the most economic way possible.
The cheapest way is through capex (with or without specialist renewable finance), and then an O&M agreement. We can asses, and help advise.
MaxGen can also provide PPAs with zero indexation, and fixed interest rate at 8%, reducing energy cost dramatically down.
When a business in the UK is reviewing its onsite renewable generation strategy, it is useful to have a comparison of the different types of renewable energy generation.
Each form of onsite renewable energy is unique in terms of the method of generation, and the resources needed. Within a renewable microgrid, they can often compliment each other, providing greater resilience for the business. For instance, solar is best in mid summer during daylight hours, where as wind is strongest in the dark winter months.
This is therefore a simple comparison between some of the more widely used renewables:
1 MW of field scale solar needs 4 - 5 acres of land, and produces:
- Average 1 MW per day in winter
- Average 4 MWs per day in summer
- Approx. 900 MWs per annum in UK at a cost of about 4 p/kWh - 9 p/kWh for field scale solar for a 20 year PPA (rooftop solar costs from about 5 p/kWh and carport solar from about 8 p/kWh)
- Limitations - need large amounts of space, and not produce much in mid winter when needed
1 MW of renewable CHP needs 0.05 acres of land, and produces:
- Average of 21 MWs per day
- Approx. 7,665 MWs per annum at a cost of 25 - 35 p/kWh on a 4 year PPA
- Length of contract from 1 year
- Limitations - Needs to be on industrial estate or remote location
I MW wind turbine needs 0.05 acres of land, and produces:
- Average of 7 MWs in summer
- Average of 11 MWs in winter
- Approx. 3,345 MWs per annum in the UK at a cost of about 4 p/kWh for a 20 year PPA
- Needs to be away from residential areas due to noise and visual impact
This is the age of smart microgrids, delivering renewable energy below the cost of grid, when and where the business needs it. In short this is truly win, win situation where businesses can reduce energy cost, carbon and risk.
Begin creating your renewable energy strategy with Maxgen, reduce your energy cost, carbon, and risk.