Power purchase agreements

As part of its capital raising or M&A mandates, Augusta has sourced and negotiated PPAs with a broad range of offtakers, from utilities through market-makers to corporates seeking green branding opportunities and industrials looking for long-term power contracts. These services are most relevant in ex-subsidy markets such as the UK or markets where there is a substantial merchant component to a project’s power offtake that needs to be contracted in order to secure the best terms from equity and debt. This is a growing area for the sector and for Augusta and we have been leading the development of the industry away from subsidies and into the corporate power purchase market for a number of years. In 2015 we succeeded in negotiating the first PPA under one of our mandates and unifying both the demands of the corporate off-taker and investors’ requirements under the sales process. This was the PPA our client Zephyr signed with Google for the 160MW Tellenes project in Norway.