A Cross-border PPA enables a business to purchase renewable energy from a generator located in a different country. These agreements are often structured as virtual or financial PPAs due to the complexity of physically delivering electricity across borders.
Cross-border PPAs help multinational businesses procure renewable energy in regions where local options are limited or expensive. The business typically receives environmental certificates that count toward sustainability goals, even though the physical electricity may be consumed elsewhere.
They are ideal for large corporates with operations in multiple countries—such as automotive firms, global tech companies, and consumer goods brands—looking to standardise their renewable procurement strategies across borders.
These PPAs can support the development of renewable projects in countries with strong resources (like wind in Spain or solar in southern Italy), leveraging favourable economics even when the business isn’t physically located nearby.
However, legal, regulatory, and accounting complexities are higher, requiring sophisticated risk management and cross-jurisdictional expertise. Businesses must ensure compliance with local disclosure and emissions accounting rules to maintain credibility.
Cross-border PPAs are a powerful tool for corporates aiming to lead in global decarbonisation efforts. They enable the deployment of capital into markets that need renewable investment, while meeting sustainability commitments across a company’s international footprint.