Impactful, fixed cost electricity for your company

Reel is a B2B electricity provider and balancing responsible party. We specialise in Power Purchase Agreements (PPAs), unique fixed-price contracts that support the development of new renewable energy projects. ‍

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With Reel, it is possible to combine different electricity products. We work closely with every customer to develop a tailored energy portfolio that maximizes budget certainty and environmental impact. ‍

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For more on our electricity products, read our answer to: What electricity products does Reel offer?

A Power Purchase Agreement (PPA) is an electricity contract between a renewable energy developer and a company. With a PPA, your company commits to purchasing electricity from a new renewable energy project (e.g., a solar or wind park) at a fixed price for a fixed period of time. ‍

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The renewable energy developer builds the renewable energy project as a direct result of the PPA (and other PPAs depending on how much you buy). The amount of electricity purchased in each PPA is typically only a portion of your total electricity consumption: you choose how much electricity you want to buy at a fixed price from the new project. ‍

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An important detail: Via Reel, you buy electricity directly from the new renewable energy project - you are not consuming the electricity from the project. Instead, Reel facilitates a contractual link between you and the renewable energy developer. ‍

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For more on PPAs, read our blog post: The most effective green power solution for businesses.

There are financial and sustainability benefits to signing a PPA.

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Financial benefits: (Long-term) price hedging and budget safety; low prices.
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With a PPA, your company purchases a fixed amount of electricity, at a fixed price, for a fixed period of time. This protects your company from the increasingly volatile prices of electricity while providing budget certainty on your electricity costs. PPA prices are typically the lowest fixed prices on the market, so you are also buying electricity cheaply.

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Sustainability benefits: Valid sustainability claims and branding opportunities.
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With a PPA, your company is responsible for the construction of a new solar or wind park. This act is additional, meaning it results in a real world impact that would not have happened otherwise. Additionality is increasingly crucial for the validity of sustainability claims - companies that don’t incorporate additionality into their sustainability strategies risk accusations of greenwashing. When it comes to storytelling and your brand,
the creation of a new solar or wind park is an inspiring climate story that few companies can make claim to. Your company will stand out while accelerating
the energy transition.

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For more on PPAs and storytelling, visit our page: How to talk about your PPA.

Power Purchase Agreements (PPAs) are the only electricity contract that result in the construction of new solar and wind parks. In doing so, they accelerate the renewable energy transition. The link between entering a PPA and the construction of a new solar or wind park is called ‘additionality’.

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Standard renewable electricity contracts include the purchase of renewable energy certificates, also known as Guarantees of Origin. These contracts do not help create new, renewable energy - in other words, they have no ‘additionality’. Their lack of real-world impact is well-documented by science¹.

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¹ Bjørn, A., Lloyd, S.M., Brander, M. and Matthews, H.D. (2022). Renewable energy certificates threaten the integrity of corporate
science-based targets. Nature Climate Change, [online] 12(6), pp.539–546. doi:https://doi.org/10.1038/s41558-022-01379-5.