What this means for a company buying a solar + battery PPA

A solar + battery PPA (or wind + battery PPA) combines renewable energy production with battery storage. In a traditional solar or wind PPA, a company buys fixed-price electricity from the park when it is producing - in other words, when the sun is shining or the wind is blowing. The company receives Guarantees of Origin (GOs) for the renewable energy it buys - and can use these to reduce its emissions.

A hybrid PPA works the same way, but the battery makes it possible to deliver that electricity over a longer part of the day. The battery stores excess solar or wind energy when production is high and releases it later, when the company's consumption is higher. This improves the match between the company's electricity use and renewable generation.

Over time, this can reduce exposure to price volatility while maintaining a direct link between emission reductions (i.e., GOs) and new renewable energy production.

If a company signs a PPA with a solar park that also has a battery:

• It receives Guarantees of Origin for the net renewable energy delivered to the grid. The presence of a battery does not prevent GO issuance.

What this means for an asset owner (solar + battery)

Energinet uses a net issuance model based on the meter at the grid connection point.

Each month, they look at two numbers:

• Production = electricity delivered to the grid (from solar directly or via the battery)
  
  

• Consumption = electricity taken from the grid (including battery charging from the grid)

The number of GOs that are issued is:

GOs = Production – Consumption

Practical consequences:

• If the battery charges from the grid, that amount is subtracted from the GOs that are issued.

• If, in a month, the park produces more renewable energy than it consumes → GOs are issued.

• If, in a month, the park consumes more energy than it produces → no GOs are issued, and the shortfall is carried forward and deducted from future months.

This ensures that GOs aren’t issued for grid electricity, and that renewable production isn’t double-counted.

Hybrid PPAs: The next step in renewable energy procurement

Hybrid PPAs represent an important evolution for both corporate buyers and renewable energy developers. Pairing renewable generation with battery storage makes it possible to increase the value of renewable assets, reduce exposure to volatile electricity prices, and improve the alignment between electricity consumption and renewable production.

Book a meeting with Reel to learn more about how we can support your renewable energy strategy.