VPP Lab begins direct PPA for wind-to-hydrogen in Jeju
VPP Lab has begun supplying renewable energy for the first direct PPA in Jeju, connecting wind power to a hydrogen production facility.
Our take
Can a VPP operator build a business supplying direct renewable PPAs in Korea?
A VPP operator can act as the renewable electricity supplier in Korean direct PPAs, but this 3 MW wind-to-hydrogen deal in Jeju shows a niche business so far rather than a shift from utility supply.
The supplier role rests on managing volumes, settlement and billing between generators and buyers, which fits a firm already running a trading platform. What decides scale is how many corporate buyers sign direct contracts, since volumes are small and margins are not published.
For investors — VPP operators and aggregators should judge the direct PPA supplier role by contracted volume and number of buyers, both small in this case, and note that margins are not published.
Corporate buyers with sites in Jeju should ask suppliers for direct PPA terms on local wind, since this first contract does not disclose them.
Watch: VPP Lab's commencement of direct PPA supply for wind-to-hydrogen in Jeju.
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