5. Number of offtakers

The most straightforward situation is one end-user for one windfarm or solarfarm. Given the size of solarfarms this is often possible. For major (offshore) windfarms the output may exceed the demand of one end-user.

Having multiple end-users in the PPA provides an attractive diversification of the default risks of the companies. For the non-utility windfarm or solarfarm it should be noted that most end-users have a higher credit rating than many of the traditional utilities. The default risk of a major corporation end-user is low. They are therefore attractive to banks. Having more offtakers makes the financing even more attractive.

Another possibility is to have a mix of offtakers: partly a tradition utility, partly several corporate offtakers and even a small part selling at own risk.

When contracting with multiple end users there are several issues to consider. Will each end-user have specific windmills or solarfarm sections? Will there be one forecasting model for the whole farm or will it be split? If split, how to deal with farm losses? How can synergies be captured? Will there be one standard contract or differing contracts? Will there be a consortium or mutual cover? Wind4ind has the experience to find the right solution for your situation.