PPA CHP Project Exampleback to Financing Main Page
Project Example: Unison Energy provided financing for the Gaylord National Harbor Resort and Convention Center’s (National Harbor, MD) 6 MW CHP microgrid through an ESA approach. Unison designed, built, and currently owns the three 2 MW generators, and sells the electricity and thermal energy to the resort. The CHP system offers significant resilience benefits to the resort and convention center, with the ability to operate in both load following and island mode and provides ~85% of the building’s energy needs.
A Power Purchase Agreement (PPA) is a financing mechanism in which a third-party developer installs, owns, and operates an energy system on a customer’s property and the customer purchases the electric or thermal output for a predetermined period of time. Under this arrangement, generally customer receives reduced energy cost and defined escalation terms with no upfront costs, and the system owner is able to take advantage of tax credits and receive income from energy sales.