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Long-term certainty for public organizations through an innovative vPPA

Written by Hannelore Dejonghe
Date
Reading Time 2 min.

Elicio supplies wind energy for Axpo’s first public sector vPPA

VEB (Flemish energy agency) , acting as the central purchasing body for public organisations, launched a tender for the long-term supply of locally generated renewable energy. The ambition was clear: to combine long-term price certainty with a direct contribution to the energy transition.

To deliver this agreement, Axpo and Elicio have joined forces in a complementary partnership:

  • Axpo, as the Balance Responsible Party (BRP), is responsible for energy management and the supply of electricity to end customers.
  • Elicio, as a renewable energy producer, supplies the green electricity generated by its Belgian wind energy assets.

This innovative vPPA (virtual Power Purchase Agreement) structure enables participating

How it works

  • Six Flemish public organisations secure a supply of Belgian wind energy for the next ten years.
  • The participating organisations represent various public service sectors, including education, infrastructure, healthcare, water services, local authorities and public transport.
  • Through a Virtual Power Purchase Agreement (vPPA), the organisations commit to the long-term production and offtake of renewable energy under a predefined pricing mechanism.
  • This innovative structure provides long-term price certainty while supporting the development of renewable energy generation in Belgium.
  • The agreement includes the transfer of Guarantees of Origin (GoOs), ensuring the verifiable and traceable renewable origin of the electricity.
  • Axpo, an international energy trading and renewable energy marketing company, will meet the participating organisations’ energy needs with wind power sourced from a selection of Elicio’s Belgian wind farms.
  • The expected annual production amounts to approximately 45.5 GWh, equivalent to the annual electricity consumption of around 13,000 households.

vPPA

This agreement is an excellent example of how instruments such as a Virtual Power Purchase Agreement (vPPA), traditionally used primarily by large industrial energy consumers, are now becoming accessible to public institutions as well.

Thanks to the economies of scale created by the central purchasing body, governments and public organisations can now also benefit from long-term price certainty, while actively contributing to the development of new renewable energy generation capacity in Belgium.

We are proud to support this pioneering agreement alongside Axpo. It shows how long-term partnerships can accelerate the energy transition while creating value for both producers and consumers of renewable energy.

Andries Teerlynck - Sales Director Elicio

A Virtual Power Purchase Agreement (vPPA) is a financial agreement linked to specific energy generation projects. The buyer does not receive the electricity directly from the project. Instead, the project sells its electricity on the energy market, while the vPPA provides for a financial settlement between the parties and the transfer of Guarantees of Origin (GoOs), which serve as proof that the energy has been generated from renewable sources.