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Power Purchase Agreement (PPA)

  • A power purchase agreement (PPA) is a long-term contract between two parties: electricity producer (the seller), and electricity consumer (the buyer).

  • Usually, consumers buy electricity from independent electricity suppliers. However, PPA agreement enables consumers to buy electricity from Renewable Electricity Sources. PPA agreement is beneficial for both parties: electricity producer ensures stable income for project financing while electricity consumer fixes electricity costs by hedging from increasing electricity prices.

  • Since 1st of May, 2019 in Lithuania new subsidy scheme for renewable electricity sources was confirmed. Under new scheme RES developers/producers will no longer receive fixed feed-in-tariffs, will have to participate in the market and will be responsible for their own balancing. As a result, PPA  serves both buyers and sellers as an excellent tool to manage their electricity market risks.

  • Axton Commodities buys and sells electricity using long-term contracts, consults during PPA negotiations, deal structuring and finds most suitable buyers and sellers for every project. 

Need more information or a personal consultation?

Balancing and Planing

  • We provide electricity planing and balancing services for electricity suppliers and generators.

  • We provide Renewable Energy Sources (RES) planning and balancing services.

We Trade:

  • Guarantees of Origin (GO)

  • European Emission Allowances (EUA)

  • Biomethane and Biogas

Need more information or a personal consultation?
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