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Wind Energy Agreements: What You Need to Know

Wind energy is becoming increasingly popular as a clean and sustainable source of power. However, harnessing wind power requires more than just a turbine. To take advantage of this renewable energy source, businesses and organizations must also secure wind energy agreements.

What are Wind Energy Agreements?

Wind energy agreements are legal contracts that establish the terms of a wind power purchase. These agreements allow businesses and organizations to buy wind power from wind energy developers. The terms of a wind energy agreement can vary greatly depending on the project, but typically cover the following aspects:

– Energy delivery: wind energy agreements stipulate when and how energy will be delivered to the client. This includes the amount of energy to be delivered, the pricing structure, and the length of the agreement.

– Project development: developers and clients may agree on certain aspects of the project, such as the location of the turbines and the timeline for construction.

– Risk allocation: wind energy agreements allocate various risks between the developer and the client, such as those related to transmission, operation, and maintenance.

– Environmental attributes: wind energy agreements may include provisions related to renewable energy credits (RECs) and other environmental attributes associated with the project.

Why are Wind Energy Agreements Important?

Wind energy agreements are important because they allow businesses and organizations to access renewable energy and achieve their sustainability goals. By purchasing wind power, clients can reduce their carbon footprint and support the growth of renewable energy. Additionally, wind energy agreements can provide long-term price stability, protect against energy price volatility, and create a hedge against rising energy costs.

Types of Wind Energy Agreements

There are several types of wind energy agreements, each with their own benefits and drawbacks. Some of the most common types include:

– Power Purchase Agreements (PPAs): PPAs are long-term contracts that typically span 10 to 20 years. They establish a fixed price for wind power, which can provide price certainty and stability for clients. PPAs can also provide a reliable revenue stream for wind energy developers, which can make it easier to secure financing for projects.

– Virtual Power Purchase Agreements (VPPAs): VPPAs are similar to PPAs, but they allow clients to purchase renewable energy credits (RECs) rather than physical energy. This can be a more flexible option for clients, as they do not need to be directly connected to the grid.

– Direct Access Agreements: Direct access agreements allow clients to purchase energy directly from a wind energy project without going through a utility. This can provide more control over pricing and energy sourcing, but it requires more technical expertise and can be more complex to implement.


Wind energy agreements are essential for businesses and organizations looking to take advantage of wind power. These agreements allow clients to purchase renewable energy, reduce their carbon footprint, and achieve their sustainability goals. By understanding the different types of wind energy agreements and their benefits, clients can make informed decisions about how to purchase wind power and support the growth of renewable energy.