Researchers in Portugal evaluated Corporate Power Purchase Agreements (CPPAs) to determine the most effective contract structures for companies relying on constant 24/7 electricity use without renewable self-generation. The study assessed eight solar CPPA types, combining four delivery profiles—Pay-as-Produced, Fixed Hourly, Monthly Baseload, and Annual Baseload—with fixed and variable price structures. A Slacks-Based Measure Data Envelopment Analysis model was used to compare financial and risk efficiency through Net Present Value, Contract Performance Deviation, and Volume Residual. Findings showed that CPPAs with a monthly baseload delivery and variable pricing offered the best balance between return and risk. In contrast, fixed hourly profile CPPAs performed the worst under both price structures. The analysis provides practical guidance for companies seeking to optimize solar energy procurement through tailored contract models.
Study finds monthly baseload CPPAs most effective in Portugal
Researchers in Portugal found monthly baseload PV CPPAs with variable pricing offered the best balance of financial performance and risk for constant electricity users.
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