NeoBid IMMO-PPA
Updated: 3 days ago
Long-Term Green Power for Real Estate Portfolios
NeoBid IMMO-PPA enables long-term procurement of green electricity from renewable generation assets through power purchase agreements. The model is tailored to the consumption profile, contract term and risk tolerance of the real estate portfolio.
Align long-term price commitments with demand
A long-term electricity offtake agreement can support planning for the volumes and price components it covers. The extent of the hedge depends on the specific contract structure.
Because generation does not always match consumption, IMMO-PPA typically supplements the PPA component with flexible spot procurement to meet the remaining demand. Low spot prices can reduce procurement costs; rising prices increase the cost of the unhedged portion.
Assess the supply profile and risks of the combined model
Combining a long-term agreement with spot procurement requires careful structuring. Alongside the agreed electricity price, relevant factors include residual demand, profile and balancing costs, and counterparty creditworthiness. The German Energy Agency’s Green PPA pricing guide (in German) explains these value and risk drivers.
NeoBid structures the overall model, integrates the PPA into the existing procurement strategy and supports implementation. The model’s high complexity arises particularly from the interaction of generation, consumption, contract duration and supplementary supply.
Substantiate the contribution to decarbonisation
A PPA can support long-term sourcing of renewable electricity and a portfolio’s decarbonisation strategy. Appropriate guarantees of origin are required to attribute the renewable electricity characteristics. The German Environment Agency explains their role in electricity disclosure (in German).
The ESG contribution should be assessed against the specific generation asset, supply scope and supporting evidence. It does not follow from the PPA label alone. Supplementary electricity procurement also belongs in this assessment.
Which portfolios may suit IMMO-PPA
The model is particularly relevant to large portfolios, operators with high electricity demand and institutional investors with a long-term planning horizon. Tenants or occupiers may also be included, depending on the structure.
Consumption profiles, contract duration and the capacity to bear risk determine the design. Our Academy article on PPA suitability for real estate portfolios explores the selection criteria.
Would you like to plan long-term green power procurement alongside supplementary supply? We can assess which PPA structure fits your portfolio and its decision-making requirements.
