Virtual Power Purchase Agreements

Renewable procurement for organisations with many sites.

A vPPA can support renewable energy and price-risk objectives without requiring a physical solar installation at every operating location.

Australian solar and wind farm serving a landscape of multiple commercial sites
Where a vPPA can fit

Useful when onsite renewable capacity cannot cover the portfolio.

A virtual PPA is fundamentally different from an onsite energy project. It is a financial and renewable procurement arrangement, so settlement mechanics, certificates, hedge exposure and accounting treatment all need careful assessment.

Multi-site portfolios

Support renewable procurement across many locations rather than developing infrastructure at each site.

Limited roof or land

Consider offsite renewable exposure where physical constraints prevent meaningful onsite generation.

ESG scale

Potentially secure larger volumes of renewable certificates and support portfolio-level emissions objectives, depending on structure.

Commercial rooftop solar and battery storage with an offsite solar and wind farm
Onsite vs virtual

The right answer may be both.

Onsite solar and storage can directly change how a facility consumes grid electricity. A vPPA works at a portfolio and market level. For larger organisations, the strongest strategy can combine onsite projects at suitable facilities with offsite procurement for the remaining load.

Compare the structures

PPA and vPPA solve different problems.

Onsite PPA

  • Physical system at your site
  • Directly offsets onsite electricity consumption
  • Can include solar and long-duration storage
  • Requires suitable site, approvals and connection
  • Operational savings are tied to site generation and usage

Virtual PPA

  • Offsite renewable generation contract
  • No physical installation required at each site
  • Supports portfolio-level renewable procurement
  • Introduces financial settlement and market exposure
  • Requires careful treatment of certificates, hedge mechanics and risk
Before proceeding

A vPPA should be evaluated with finance, energy and risk stakeholders together.

The contract can create long-term financial exposure. Green Grid Australia can help frame the energy strategy and compare the role of onsite and offsite structures, while specialist legal, accounting and market advice should form part of any final transaction.

Next step

Not sure whether to start onsite or virtual?

We can compare the two pathways using your site portfolio and energy objectives.