Power Purchase Agreements: KPMG`s Expertise

Power Purchase Agreements (PPAs) are becoming increasingly popular in the energy sector, as they offer a range of benefits for both energy buyers and sellers. A PPA is a legal agreement between an energy buyer and a seller, in which the buyer purchases a specified quantity of energy, usually renewable, at an agreed-upon price for a predetermined period. PPAs are becoming more common in large scale energy procurement, particularly for companies with sustainability goals.

KPMG is a global network of professional firms providing Audit, Tax and Advisory services, and they offer expertise and advisory services to corporate clients looking to execute PPAs. With its vast clientele list, KPMG is well-positioned to provide market insights and analysis, due diligence reviews, risk assessment, and negotiation guidance for companies that plan to engage in the PPA market.

Benefits of PPAs

The benefits of a PPA for energy buyers include cost predictability, price stability, and risk mitigation. A PPA offers long-term price certainty for the buyer, which is particularly important to companies with sustainability goals and long-term planning horizons. PPAs also allow buyers to support renewable energy development, which is critical in achieving net-zero emissions.

For sellers, PPAs offer revenue stability, which is instrumental for financing renewable energy projects. PPAs allow developers to secure long-term revenue streams, which is especially crucial in the competitive energy market. Moreover, PPAs can offer a guaranteed market for energy generation, which enables wind and solar farms to secure financing.

KPMG`s Role

KPMG`s PPA services are designed to help organizations navigate the complex world of renewable energy procurement. KPMG offers a wide range of services, including market analysis, risk assessment, stakeholder engagement, negotiation assistance, and financial structuring advice. KPMG`s team of experienced professionals work with clients to understand their needs and objectives, and offer tailored solutions to support them in achieving their goals.

One of KPMG`s critical services is due diligence reviews, which aim to identify and assess the critical risks associated with the energy project. Due diligence reviews can cover various aspects, including technical, commercial, financial, regulatory, and environmental risks. KPMG`s expertise in risk assessment and financial modeling help clients to quantify and mitigate risks, enhancing their confidence in entering the PPA market.

Conclusion

PPAs are instrumental in facilitating renewable energy development, and KPMG is well-positioned to offer clients the expertise and support needed to successfully navigate the PPA market. With its vast experience in audit, tax, and advisory services, KPMG provides clients with comprehensive services, including market analysis, risk assessment, and financial structuring advice. KPMG`s services help companies to achieve their sustainability goals while mitigating risks and realizing the benefits of renewable energy procurement.