TFS Green recently revealed a first-of-a-kind “firm solar contract” product and the first transaction for such product in Victoria. TFS Green claims the product will aid in paving the way for more companies and big energy users to source part of their energy supply from solar power purchase agreements or PPAs.
An article on the RenewEconomy website stated that companies are already showing great interest in both large-scale solar farms and wind farms in order to lessen their expensive electricity bills. Some of the big companies that have already adopted utilizing renewables include Electrolux, SA Water, Nectar Farms, and Sun Metals.
One major concern present is to shape contracts that correspond to the load of the buyers. An official at TFS Green said that ERM Energy, a retailer that focuses on the corporate market, will supervise the wholesale price risk under the new “firm solar contract.”
The report added, “The contract replicates the “shape” of solar generation, and then matches the buyer’s needs with contracts for supply to the wholesale market. This guarantees a flat and fixed price for that power.”
Chris Halliwell, the Manager of Renewable Energy and Environmental Markets at TFS Green said, “It is de-risking and firming up solar generation for project owners and market participants. We are going to start seeing a lot more of these sort of contracts as corporate buyers and market participants look to integrate renewable contracts.”
The two initial solar products are called “solar shape” and “solar firming” or inverse solar shape. In “solar shape,” a Victoria generic solar shape with stapled LGCs will require the buyer to buy all the half hours for the relevant period. Each MWh will have 1 LGC stapled to it and targets to represent a bundled solar deal. The lowest limit lot size is 10MW capacity with associated LGCs.
In “solar firming,” the buyer will buy all the half hours for the relevant period, which is essentially the inverse of “solar shape,” but there will be no stapled LGCs.
To know more about this, read the full story here.
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