In this episode of Flexing the Future, Jens is joined by energy market expert Dieter Jong to explore the growing relevance of Power Purchase Agreements (PPAs) in industrial energy strategies. The discussion sheds light on how PPAs are evolving from traditional supplier contracts into direct, long-term agreements between industrial consumers and renewable energy producers, offering both cost predictability and environmental benefits.
The conversation explores the various types of PPAs, from “pay-as-produced” to “financial (virtual) PPAs”, and how these different structures impact consumption and risk. Contrary to the assumption that PPAs might limit flexibility, the hosts argue that they actually enhance it. By fixing a price for renewable energy while aligning consumption with production patterns (such as sun or wind availability), companies are incentivized to shift their usage, thus unlocking new value from demand-side flexibility.
The podcast also delves into on-site vs. off-site PPAs, the emerging role of battery storage and curtailment services, and the growing importance of contract structuring and expert guidance. As more medium-sized industrial players enter the PPA market, the need for clear understanding of contractual mechanisms, including volume and balancing risks, is becoming critical.
Ultimately, this episode highlights that PPAs are more than just financial instruments: they are enablers of strategic, sustainable, and future-proof energy management. With proper setup and advisory, they help industrial consumers secure long-term green energy at predictable costs, while still enabling the operational flexibility needed to remain competitive in a volatile market.
Find out the full story in this new episode of our podcast Flexing the Future.
