EXPORT PPA

A Wholesale Export Power Purchase Agreement (PPA) is a contract that allows businesses to sell the electricity they generate at either:

• Half-hourly System Sell Price (SSP) linked to the wholesale market, or
• A fixed export price agreed for a set period

It is typically used by:

• Businesses with on-site generation (such as solar PV)
• Sites exporting surplus electricity to the grid
• Organisations looking to optimise the value of their generated power

In simple terms, an export PPA determines how your electricity is priced when it is sold back to the grid.

Export PPAs generally fall into two categories:

1. Half-Hourly System Sell Price (SSP)
Your exported energy is sold at the live wholesale rate for each half-hour settlement period.

• Prices fluctuate throughout the day
• Revenue reflects real-time market conditions
• Higher potential returns during peak pricing periods
• Greater exposure to volatility

2. Fixed Price Export Contracts
Your exported energy is sold at a pre-agreed rate.

• Stable and predictable revenue
• No exposure to market swings
• Simpler to manage and forecast
• May limit upside when market prices are high

Each structure offers a different balance of risk and reward.

Traditional export tariffs are often low and inflexible.

Export PPAs offer:

• Access to wholesale market pricing
• More control over how energy is monetised
• The ability to align export strategy with business objectives

For some businesses, particularly those with significant generation, this can materially improve returns.

Under a half-hourly SSP structure:

• Export prices change every 30 minutes
• Revenue depends on when your system generates electricity
• Midday solar generation may not always align with peak pricing

Under a fixed contract:

• Revenue is consistent regardless of market movement
• There is no benefit from price spikes
• Income is easier to forecast over time

The key difference is exposure vs certainty.

Wholesale energy prices are inherently volatile.

Under SSP exposure:

• Prices can vary significantly day-to-day
• Seasonal trends impact export value
• External factors (demand, weather, grid conditions) influence revenue

This means export income is not just about how much you generate — but when you generate it.

Choosing between SSP and fixed pricing is not just a pricing decision — it’s a strategic one.

Performance depends on:

• Your generation profile (e.g. solar output timing)
• Your appetite for risk
• Contract structure and flexibility
• Alignment with market price patterns

Two identical solar systems can produce very different financial outcomes depending on the PPA structure chosen.

Common mistakes include:

• Choosing SSP without understanding volatility exposure
• Locking into fixed rates without considering market upside
• Ignoring how generation timing impacts SSP revenue
• Treating export pricing as a simple tick-box decision

This is where missed value or unexpected outcomes often occur.

The right export PPA depends on how well the structure fits your asset.

Key considerations include:

• Whether to take market exposure (SSP) or secure certainty (fixed)
• How your generation aligns with higher-value periods
• Contract length and flexibility
• Risk tolerance and financial objectives

Even small structural decisions can significantly impact long-term returns.

Wholesale Export PPAs typically come down to a clear choice:

• Half-hourly SSP for market-linked opportunity (with volatility), or
• Fixed pricing for stability and predictability

Neither is inherently better — the right option depends on how it aligns with your generation profile and commercial goals.

Success is not just about exporting energy, but about choosing the structure that delivers value over time.

Contact us today to discuss your export options and start earning from your energy.