Amazon has signed a long-term power purchase agreement (PPA) with Italian energy firm ERG Group as a pay-as-produced agreement in which ERG will supply the cloud giant with Renewable Energy Guarantees of Origin (REGOs) produced by the Corlacky wind farm. According to ERG, the PPA will deliver Amazon 2.5TWh of power over the agreement's term.
Commenting on the PPA, Paolo Merli, CEO of ERG, said: "This important contract with a global player confirms ERG’s leadership role in the PPA market," and described PPAs as "fundamental tools for stabilizing revenues in a volatile price scenario. Thanks to this further agreement, the energy secured by the Group through PPAs exceeds 3TWh per year.”
REGOs (known as Renewable Energy Credits in the US) are certificates issued to accredited renewable generators for every MWh of electricity they produce over a year. REGOs have been criticized as a low-quality form of renewable energy investment because there is no guarantee that renewable energy was consumed or that new renewable energy capacity was built to match the demand.
