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In recent years the topic of renewable energy aggregation has dominated industry insider conferences and hallway conversations, as many look to lower the barrier of entry for first-time buyers. For those that are new to renewable energy and looking to better understand the need and components of an aggregation strategy, here’s an overview.
Energy aggregation is when a group of companies or local institutions partner together to buy energy from a single developer, or multiple developers, at smaller volumes while retaining the economic advantages of a high-volume purchase.
The term is widely used to describe bulk purchases of renewables from wind, solar and hydro-power projects. Unless an organization has the finances and energy demands of a large company like Microsoft, Apple or IKEA, purchasing renewables isn’t a viable option without aggregating a group of smaller buyers together to sign a power purchase agreement (PPA).
