High Energy Users

Under the terms of its virtual PPA, ILOS will orchestrate the sale of solar power from one of its projects to a selected licensed supplier, or utility, at the wholesale market price. ILOS will then arrange the terms for the corporate energy buyer to purchase an equivalent fixed volume of electricity from the same licensed supplier.

Separately, a financial contract is agreed between ILOS and the energy buyer based on a fixed “strike price”. If the market price of electricity is below the strike price, the energy buyer pays the difference to ILOS. If the market price is above the strike price, ILOS pays the difference to the buyer.

This settlement mechanism ensures that, over time, the buyer achieves a predictable, fixed price for an agreed volume of energy, reducing exposure to rising market prices.

In parallel, the buyer receives renewable energy certificates associated with the project (such as REGOs), enabling verified Scope 2 emissions reduction and supporting ESG reporting.

A virtual PPA can be an effective solution where a direct physical connection to renewable generation is not possible, or when operational flexibility is a priority.

This structure is particularly well suited to organisations with multiple sites, or those with energy demand spread across different locations, where a single on-site or private wire solution would not fully meet requirements. It also provides a route to engage with large-scale renewable projects without the need for co-location.

For businesses looking to secure long-term price certainty while maintaining existing supply arrangements, a VPPA offers a way to layer a structured pricing mechanism over current procurement. This can be especially relevant when energy strategies are evolving, or when internal stakeholders require flexibility alongside forward price visibility.

In addition, a VPPA can support organisations seeking to make meaningful progress against sustainability targets. By linking energy consumption to new renewable generation and securing associated certificates, businesses can demonstrate measurable Scope 2 emissions reductions and align with wider ESG commitments.

ILOS approaches virtual PPAs with the same focus on long-term partnership and commercial clarity as its physical energy solutions.

We work closely with energy buyers to structure agreements that are aligned with both operational realities and financial objectives. This includes supporting the selection of appropriate generation assets, structuring the hedging mechanism, and ensuring that the agreement integrates effectively with existing supply contracts.

Our understanding of both renewable generation and energy market dynamics allows us to develop VPPA structures that are robust, transparent and designed to perform over the long term. We place particular emphasis on ensuring that the commercial mechanics are clearly understood, so that buyers can enter into agreements with confidence.

In parallel, ILOS ensures that the environmental attributes of the project are properly captured and transferred, supporting ESG reporting requirements and enabling businesses to evidence real progress against decarbonisation targets.

As with all ILOS solutions, the focus is on delivering practical, bankable structures that provide long-term value, rather than short-term fixes.