Glossary of Terms

  • cPPA (corporate Power Purchase Agreement) is a direct agreement between a renewable energy producer and a consumer, stabilizing electricity prices and ensuring the purchase of green energy.
  • ESG (Environmental, Social, Governance) – a concept of sustainable corporate development covering three assessment areas: environmental (E) – impact of the company’s activities on the natural environment, social (S) – relations with employees, communities, and stakeholders, and governance (G) – management, supervision, and business ethics. ESG criteria are used to assess long-term stability, responsibility, and credibility of companies.
  • Guarantees of origin – a document confirming that energy comes from renewable sources, serving as official proof for consumers that their energy consumption comes from RES.
  • Financial (virtual) cPPA (CfD) an agreement between an energy producer and consumer without physical delivery of electricity. The parties settle only the difference between the market price and the contract price, allowing the consumer to hedge price fluctuations and giving the producer stable revenues.
  • Physical cPPA is a contract between an energy producer and consumer for physical delivery of electricity at a fixed price, bypassing the Power Exchange. A trading company settles and balances the contract, and the consumer receives guarantees of origin.
  • RES as a service a model in which the energy producer builds and leases a renewable energy installation to the consumer instead of selling electricity. The consumer pays for the lease, while the producer provides maintenance and guaranteed performance.
  • Off-site cPPA is a corporate renewable energy purchase agreement where the energy source is located in a different place than the consumer’s site. Electricity is delivered through the grid, and such agreements can be physical or financial (virtual).
  • On-site cPPA with direct line is a corporate energy purchase agreement where a renewable energy installation is located directly at the consumer’s facility, with electricity supplied via a direct line connecting the producer and consumer bypassing the public grid.
  • Power Exchange a marketplace for trading electricity, natural gas, etc. Participants can buy and sell short- and long-term, ensuring price transparency and market stability.
  • Fixed price model – an electricity purchase agreement in which the price remains fixed throughout the contract term, regardless of market fluctuations.
  • Pay as Produce model, a payment structure where the consumer commits to consuming all energy produced by the installation.
  • Pay as Consumed model, a payment structure in which the consumer pays only for the amount of energy actually consumed.
  • Baseload constant, steady energy demand throughout the day or week that covers the essential electricity needs of the consumer.
  • Description of Needs and Requirements (OPiW) – a set of rules and criteria regulating various processes, including procurement procedures. It defines general requirements and conditions that must be met by participants in a given process.
  • Energy mix refers to the proportion of different energy sources used to generate electricity, including renewable and other types of energy.
  • Spot market, a market where transactions are carried out immediately at current prices and available supply.
  • Make or buy, a choice between performing a task in-house or outsourcing it to an external provider.
  • Minimum requirements in a negotiated procurement procedure with prior announcement are criteria set by the contracting authority that cannot be changed later. They define parameters such as contract type, supply volumes, and delivery terms while allowing flexibility in other areas.
  • Bid evaluation criteria, objective and non-discriminatory criteria set in the Tender Specification and Description of Needs and Requirements to evaluate and rank bids and select the most advantageous offer; evaluation criteria cannot concern contractor characteristics.
  • Selection criteria, objective and non-discriminatory criteria used to limit the number of contractors not subject to exclusion and meeting participation conditions.
  • Direct line (direct line) an electricity line connecting a dedicated generation unit with a dedicated consumer for direct electricity delivery.
  • Participation conditions, requirements for contractors enabling assessment of their ability to perform the contract, particularly regarding experience or legal authorizations (e.g., licenses to generate or trade electricity).
  • Dedicated generation unit (which may also be a RES installation) is a unit from which all generated electricity is supplied directly to a specific consumer.
  • Dedicated consumer a consumer not connected to the public grid or connected in a way preventing injection of energy generated by the dedicated unit into the grid, although they still retain the right to connect to the grid and withdraw energy from it.

Abbreviations

cPPA – corporate power purchase agreement
CfD – contract for difference
KUKE – Export Credit Insurance Corporation
TGE – Polish Power Exchange
RES – renewable energy sources
PPL – Public Procurement Law
DSO – distribution system operator
PPAO – Public Procurement Office
TSS – Terms of Reference
EFET – European Federation of Energy Traders
Public Finance Act
Public Finance Discipline Act
OPiW – description of needs and requirements