The changing landscape of behind-the-meter PPAs

The new breed of Behind-the-Meter PPAs see solar and batteries increasingly hybridised and working together. Depending on priorities, there are on the one hand batteries enabling PPAs to supply up to 24/7 renewable energy and on the other hand batteries maximising their profit through multi-tasking: serving the PPA during some hours while capturing market-based value when otherwise idle. 

This approach makes a lot of sense as it will significantly increase the battery’s revenue earning potential, but it also brings some contracting and operational challenges, including how to optimise the battery dispatch around the different price signals and how to account for different energy flows.

How a classic BtM solar-only PPA works

• Single asset, simple flow. Solar generation is either consumed on-site or, if the setup allows, exported at a feed-in tariff.
• Simple settlement. Every kWh metered behind the customer’s main meter is billed at the agreed PPA price; anything that slips through to the grid earns the export tariff.
• No time-shifting and no additional value streams. Commercial discussions focus on strike price, indexation and O&M obligations, not on when or where the energy is delivered.

Watch Ashok's video below to see this in action:

Types of Behind-the-Meter PPAs

What changes when you bolt on a battery

Coming soon

At Gridcog we’ve been rolling up our sleeves and putting a lot of product effort into being able to reflect these new PPA structures - especially with multi-tasking (and more co-optimised than ever) BESS - correctly. We’re looking forward to sharing what we’ve been working on with you very soon!