PPAs: How large companies are shaping the future of energy.

In recent years, the world has witnessed a profound transformation in how energy is generated, contracted, and consumed. One of the main tools of this change is Power Purchase Agreements (PPAs) – long-term energy purchase and sale contracts that have been driving renewable energy projects in various countries.

What are PPAs and why are they growing in popularity?

PPAs are contracts signed, usually between a power generator and a consumer, to guarantee the supply of electricity at a fixed or variable price for a long period (generally over 15 years). This structure provides financial security for the construction of new wind farms, hydroelectric plants, and other projects, while also offering cost stability for companies that want to reduce their exposure to market fluctuations.

The trend gained momentum with the growing demand for clean energy and the goal of large global corporations to achieve carbon neutrality . Companies like Google, Amazon, and Microsoft have already signed multi-billion dollar contracts for the direct purchase of renewable energy, enabling numerous large-scale projects, especially in the United States and Europe.

International case studies that inspire the market.

Google, for example, is now one of the world's largest consumers of renewable energy, having signed multiple PPAs to ensure its data centers operate 100% on clean energy. In 2020, Amazon announced a package of 26 new renewable energy projects globally, also made possible by long-term contracts.

These initiatives not only contribute to the sustainability of these giants' operations, but also strengthen the value chain, encouraging technological development and attracting investment to these regions.

And what about Brazil in this scenario?

Brazil, with its already largely clean energy matrix, is experiencing an interesting transition. The expansion of the free energy market , where consumers can negotiate directly with generators, opens up space for private PPAs — a trend that should gain increasing momentum in the coming years.

Wind energy, which already holds a prominent position in the Northeast of Brazil, is also beginning to expand to new regions, taking advantage of natural resources and favorable infrastructure. In this context, companies that understand this dynamic of negotiating structured contracts and developing renewable projects tend to have a competitive advantage.

The role of Alphainfra

With experience in structuring power generation assets and negotiating PPA receivables in the free market , Alphainfra closely follows these global trends and adapts best practices to the Brazilian context. By combining technical knowledge, strategic vision, and relationships with different stakeholders, the company positions itself as an anchor partner for those seeking opportunities in the complex energy sector.