FINANCIAL STRUCTURING · PPA

Energy investment through a PPA

A power purchase agreement (PPA) defines how capital, ownership, operations and electricity purchases are structured. 365Energy connects engineering, commercial planning and delivery to suit each facility.

Rooftop solar installation at an industrial facility

365EnergyINVESTMENT STRUCTURING · DELIVERY · OPERATIONS
FACILITYELECTRICITY DEMAND · CAPITAL · RESPONSIBILITIESPPA
01Capital investment
02Ownership
03Operating responsibilities
04Contract terms
01THE PPA MODEL
HOW IT WORKS

How does a PPA work?

A PPA can separate the decision to use electricity from the decision to own the assets. The facility purchases electricity under a contract, while investment and operating responsibilities follow the project structure.

01

Facility requirements

Review electricity consumption, load profiles, operating hours and site conditions.

02

Project structure & PPA

Define investment principles, ownership, responsibilities and electricity purchase terms for the project.

03

Electricity under contract

The system supplies electricity to the facility. Consumption and payment follow the agreed arrangements.

ENERGY FLOWOn-site system → Facility → Electricity consumed on site
COMMERCIAL FLOWFacility → Electricity payments → Under the PPA terms
02ASSESSING SUITABILITY
START WITH DATA

Is a PPA a good fit?

Suitability depends on electricity demand, site conditions, the planned period of use, capital priorities and energy goals.

01

Electricity demand

Is there enough information on consumption, load profiles and operating hours to assess the options?

02

Site conditions

Are the roof or available space, structural conditions and technical constraints suitable for further assessment?

03

Planned period of use

Do site-use rights and operating plans support a long-term contract structure?

04

Investment priorities

How does the business want to balance upfront investment, cash flow, ownership and control?

05

Energy goals

Which electricity cost, renewable energy and ESG requirements should take priority?

03INVESTMENT STRUCTURE
COMPARE YOUR OPTIONS

PPA, EPC or EPC-F?

The main differences between EPC, EPC-F and PPA are capital investment, ownership, control of the assets and operating responsibilities.

COMPARISON FOCUSHow capital, ownership and responsibilities are allocated
CRITERIA
EPC
EPC-F
PPA
Capital investment
Customer-funded
Under the financing structure
Under the PPA structure
Ownership
Customer
Under the financing structure
Under the PPA contract
Asset control
Direct
Under the agreed structure
Under the PPA contract
Payment method
Project investment
Under the financing arrangement
Electricity purchases under a PPA
Operations & maintenance
In-house or contracted within an agreed scope
Under the agreed scope
Under the PPA terms

This is a comparison of the models in general terms. Specific terms must be confirmed for each commercial proposal and contract.

04ALLOCATING RESPONSIBILITIES
DEFINE THE SCOPE

Clear responsibilities from the start

Before agreeing on a proposal, clarify who provides the data, who invests, who owns the assets and who handles engineering and operations.

SCOPE FACILITY INVESTOR / PPA PARTNER 365Energy
Load & site data Provide inputs — Review
Technical assessment Coordinate — Within the project scope
Engineering design Coordinate Under the project structure Within the project scope
Project investment Under the proposed arrangement Under the contract Within the confirmed scope
Asset ownership Under the contract Under the contract Within the confirmed scope
Operations, maintenance & monitoring Coordinate Under the contract Within the agreed scope

Load & site data

Facility
Provide inputs
365Energy
Review

Technical assessment & design

Facility
Coordinate
365Energy
Within the project scope

Investment & ownership

PPA party
Under the contract
365Energy
Within the confirmed scope

Operations & monitoring

PPA party
Under the contract
365Energy
Within the agreed scope
05DELIVERY PROCESS
FROM ASSESSMENT TO OPERATIONS

The PPA delivery process

The process moves from initial data to feasibility assessment, commercial structuring, contracting, delivery and operations.

01

Data review

Electricity bills, load profiles, site information and operating conditions.

OUTPUT · Basis for project assessment
02

Technical assessment

Technical feasibility, the basis for system sizing and key technical constraints.

OUTPUT · Preliminary technical proposal
03

Commercial structuring

Investment arrangements, PPA principles and allocation of responsibilities.

OUTPUT · Proposed structure
04

Contracting & preparation

Agree on the scope, terms and requirements before implementation.

OUTPUT · Readiness for implementation
05

Design & construction

Design, procurement, construction, QA/QC, testing and acceptance.

OUTPUT · Completed system
06

Operations & management

Monitoring, O&M and reporting within the agreed scope.

OUTPUT · Long-term operations management
06DELIVERY CONTROLS
KEY CHECKPOINTS

Controls throughout delivery

Each stage needs a clear checkpoint to reduce gaps between commercial decisions and technical execution.

Four points to confirm

Each checkpoint clarifies inputs, scope and responsibilities before the project moves to the next stage.

01

Technical basis

Clarify load data, site conditions and technical assumptions before structuring the proposal.

02

Commercial scope

Define ownership, responsibilities, payment arrangements and contract conditions for each project.

03

Execution controls

Manage design, QA/QC, testing and acceptance within the agreed delivery scope.

04

Lifecycle management

Link monitoring, O&M and reporting to operating responsibilities once the project is in service.

07FREQUENTLY ASKED QUESTIONS
BEFORE THE ASSESSMENT

PPA questions answered

The information below is general. Specific terms must be confirmed against the project, contract and applicable regulations.

01How do PPA and DPPA differ?

On this page, PPA refers to an on-site project model. DPPA is a direct power purchase mechanism between renewable energy generators and large electricity users under Decree 57/2025/ND-CP, as amended by Decree 243/2026/ND-CP. Whether a project falls under or needs to use the DPPA mechanism must be reviewed against its connection model, participating parties and the regulations in force at the time of assessment.

02How is the PPA electricity price determined?

There is no single price that should be assumed for every facility. An assessment needs to consider technical conditions, investment structure, contract duration, operating scope and allocation of responsibilities.

03How is the PPA contract term determined?

The contract term is part of the commercial structure. It needs to be assessed alongside site-use conditions, investment arrangements, project economics and the parties’ long-term responsibilities.

04What happens when the contract ends?

End-of-term arrangements depend on the agreed terms and the project’s ownership structure. Asset transfer should not be assumed unless it is specified in the contract.

05What if the facility’s electricity demand changes?

Changes in demand can affect system sizing, self-consumption and the commercial viability of the proposal. Current data and planned operational changes should therefore be considered from the outset.

—ASSESSMENT OUTPUTS
WHAT YOU RECEIVE

A basis for your PPA decision

Depending on the available data and the initial assessment scope, 365Energy focuses on four outputs to help the business decide its next step.

01

Technical suitability

Key technical conditions and constraints to confirm before proceeding further.

02

Preliminary PPA framework

An initial approach to investment structure, electricity purchases and the assumptions that need testing.

03

Key responsibilities

The parties and responsibilities to clarify in the next project stage.

04

Additional data needed

Missing information required to continue the technical and commercial assessment.

NEXT STEP

Assess your PPA options

Every facility has a different load profile, site conditions and investment goals. Share your initial information so 365Energy can identify the data needed for the next assessment stage.

01Electricity bills / load profiles, if available
02Roof or site information
03Operating hours / production shifts
04Capital investment priorities
05Renewable energy / ESG requirements, if applicable