Sanza Energy, Spain’s first digital platform for commercializing power purchase agreement (PPA), has come into operation in February. The platform is designed to simplify the process of acquiring and selling energy while stimulate the development of new renewable projects.
To date, PPAs have been negotiated and executed on an individual basis between energy producers and off-takers, with no common standards. Sanza Energy thus provides representative agent services for providers and purchasers who wish to participate in the wholesale power market.
It enables generators to ensure the payment of investments and debts assumed for project development, as well as the thorough management of technical management, data monitoring and analysis, and asset financial management.
Sanza Energy targets businesses who utilize large amount of electricity or are committed to sustainable business operations and seek to reduce their carbon footprint, enabling them to buy electricity directly from projects certified with Guarantees of Origin (GOs), as well as lowering long-term energy costs and attaining their environmental sustainability goals.
The electricity purchase contracts between a generator and a buyer, known as PPAs, establish an agreed price and for a specific duration, allowing for energy price stability at a given time when spot market is fluctuating and volatile.
Sanza Energy allow firms to maintain long-term cost stability by acquiring electricity directly from renewable generation projects using standardized contractual processes that significantly cut costs and negotiating times without the need for a dedicated energy management department.
When enrolling on Sanza Market, companies can choose the renewable project as well as the PPA that best matches the demands, and will be able to track and participate in open auction bids. Once supply and demand are matched in the PPA, the website will allow users to track the progress of projects in the development or construction phases.