Canadian Solar Inc. is supplying solar energy to the company of oil & gas pipeline Energy Transfer from solar projects. Hence, the solar project is signing the solar contract of Dallas-based Energy.
However, Canadian Solar is having subsidiary Recurrent Energy signing PPA (Power Purchase Agreement) for supplying Energy Transfer with solar energy. Although, the agreement is signing the Maplewood 2 project in Pecos County in Texas for almost 16 years.
Although, insiders of the renewable energy industry is aware that solar PPAs helps corporations to lock in affordable prices of electricity. However, it is useful for power operations. Hence, it is satisfying in 2019 for observing the partners from the conventional energy sector such as Energy Transfer. Thus, it is viewing the purchase of electricity from high quality Canadian Solar assets such as Maplewood 2 project as a sensible decision.
As per vice president of Power Optimization, Energy Transfer, David Coker, PPA makes economic sense for a company of oil & gas pipeline.
Coker concentrates on operating the facilities effectively and safely, and depend on electrical energy driven by natural gas. However, by using the diversifying mix of the energy sources making economic sense. Actually, the percentage of electrical energy on purchase is originating from wind and solar sources is more than around 30%. This is adding the contract with the Recurrent Energy.
As the oil & gas company is signing the PPA for using renewable energy for oil & gas operations.
Although, U.S. supermajor Exxon is signing the deal with Danish Company of renewable energy Orated for buying electricity. However, the production of electricity is completing by wind and solar farms for powering oil production in Permian. The terms of a contract are remaining private, as it is the largest contract containing an oil company as a party.