AYA lexicon: key energy terms
The energy world uses specific terminology. PPAs, clicks, asset management etc. We will be happy to guide you through the energy lexicon.
Asset management of your renewable energy project includes all the tasks necessary to achieve an optimal result. For example, in the case of a solar installation, these are the main tasks of an asset manager:
Supervision: Monitoring the performance of the solar installation and swiftly detecting and resolving defects.
Maintenance: Planning and implementation of corrective and preventive maintenance to maximum the performance of your solar park and increase its lifespan.
Reporting: Regular reporting on the performance of the solar park, including the energy proceeds and costs.
Financial management: Financial management of the solar park including management of the operational costs.
Contract management: Managing contracts with the various stakeholders of the solar park, including the energy suppliers, maintenance companies and insurance companies.
Legislation and compliance: Ensuring compliance with all legal and regulatory requirements with regard to the solar park such as environmental laws, taxes and insurance.
The injection rate or the feed-in rate is the financial compensation you get from your energy supplier for the electricity produced by your renewable energy sources (such as solar panels) that you can’t immediately consume yourself. You feed this ‘extra’ electricity into the grid and receive remuneration from your energy supplier.
Green energy is produced from renewable energy sources such as sun, wind, water, or high-calorie biomass.
Grey energy is energy generated using fossil fuels. Fossil fuels, unlike green energy, are finite and depleting. The production and conversion of grey energy is harmful to the environment and therefore not sustainable.
A PPA or Power Purchase Agreement is an electricity purchase and delivery contract. The agreement includes the terms & conditions for this delivery such as the quantity of electricity to be delivered, the price, payment terms etc.
A Corporate PPA is an agreement between companies with no direct intervention by an energy company. A company produces renewable energy through a production plant, such as a wind park or solar panel park. A corporate partner purchases a set quantity of energy at a pre-agreed price. Through the CPPA, the producer reduces the project’s market risk.
With clicks, you determine when you purchase energy. That way, you flexibly adapt to the fluctuations in the energy market and limit your financial risk. An effective click strategy requires a good knowledge of the energy market and trends.
DSR or Demand Side Response is a strategy to manage energy consumption flexibly. The aim of DSR is to align electricity demand with supply better and to balance the electricity grid. Businesses can reduce their consumption by using on-site energy production, energy storage, shifting demand to another time, etc.
A solar power plant or photovoltaic installation. This transforms sunlight into electricity. In this kind of installation, the solar panels collect solar energy, and an inverter transforms the direct current collected into alternating current.
Abbreviations and units of measurement
kilowatt/hour, a unit that expresses a quantity of energy (electricity or other energy). 1kWh = 1000 Wh = 3,600,000 joules
megawatt hour, 1MWh = 1000 kWh
gigawatt hour, 1GWh = 1000 MWh
terawatt hour, 1TWh = 1000 GWh
photovoltaic. This means making electricity from light.
Guarantee of Origin The way the origin of energy produced is proven.