“We are very pleased to develop creative financing solutions to meet the challenges of the Nexus water-energy,” said Matthew Silver, CEO of Cambrian Innovation. “WePA is an exciting new vehicle that makes it easier for industrial companies to acquire the valuable resources hidden in the value previously considered a liability, without capital risk or operating risk. This is an asset for customers facing rising water management costs and for investors who want to access the fast-growing industrial water sector. For a more detailed analysis of AAE issues of this type, see ifC`s guide to electricity purchase contracts (1996) – see Appendix 2 (page 160) of the World Bank concession toolkit (pdf). An Electricity Purchase Contract (AAE) allows commercial, industrial, institutional and state organizations to find ways to monetize operations that were traditionally cost points, while independent energy suppliers can find a way to reach capital. A power purchase agreement (AAE) provides payment flow for a build-own transfer (BOT) or a concession project for an independent power plant (PPI). It is between the “buyer” buyer (often a state electricity supplier) and a private electricity producer. The AAE described here is not suitable for electricity sold on world markets (see deregulated electricity markets below). This summary focuses on a basic thermal charge facility (the problems would be slightly different for thermal or hydroelectric power plants in the central area or in the state-of-the-art facilities). A new form of PPP has recently been proposed to commercialize electric vehicle charging stations through a bilateral form of electricity purchase contract. Cambrian Innovation has developed the Water and Energy Purchase Contract (WEPA) to make on-site distributed solutions for process water treatment and water reuse accessible. On the basis of the solar industry`s electricity purchase contract (AAE), it offers an alternative for capital purchases, leases and operating contracts for process water treatment, renewable energy production and water reuse.
This is a long-term fixed-price agreement linked to certain renewable energy production facilities. The duration may vary, but between 10 and 15 years is the most common. As a general rule, this is a direct agreement with a fixed-price structure for the full contract. This reduces the price risk for the share of electricity purchased through AAEs, since exposure to future price volatility is eliminated. An electricity purchase contract (AAE) or an electricity contract is a contract between two parties, one that produces electricity (the seller) and the other that wants to buy electricity (the buyer). The PPP sets out all the terms and conditions for the sale of electricity between the two parties, including when the project will begin operating commercially, electricity delivery schedule, delivery penalties, payment terms and termination.