AAEs are complex contracts and often require a lot of time and negotiation before conclusion. The long-term nature of AAEs can be a disadvantage in the event of price changes, which in the end is negative for some. In addition, the production of electricity itself – particularly from wind and photovoltaic installations – can vary. If the amounts of electricity agreed in advance are not available at the time of delivery, the operator must pay financial or physical compensation or outsource them to third parties, such as . B an electricity distributor. In some countries, air-mining contracts are already being used to finance the construction (investment costs) and operation (operating costs) of renewable energy facilities. Countries that need utilities or want to cover part of their electricity supply from renewable energy sources are particularly attracted to AAEs. The agreements are an alternative for the development of renewable energy in areas where policies are reluctant to promote the development of renewable energy (and subsidies). French contracts for the purchase of standard electricity (Indicative models of electricity obligation contracts) for small installations and renewable energy sources, under the 2000 Act (Law 2000-108 of February 10, 2000) and the corresponding decree law (decree 2000-877 of September 7, 2000) and the 2001 decree (Decret-Nr.2001-410 of 10 May 2001), whose grid and distributors must source electricity from small generators and wind power – Arré du 8 June 2001 setting the conditions for the purchase of electricity generated by facilities using wind mechanical energy as referred to in Article 2 (2o) of Decree No.

2000-1196 of 6 December 2000. According to BloombergNEF`s latest Corporate Energy Market Outlook, companies around the world purchased a record amount of clean energy through PPAs in 2019. In total, approximately 19.5 gigawatts (GW) have been signed for renewable energy contracts between more than 100 companies in 23 different countries. 13.6 GW were signed in the United States and 2.6 GW in Europe, the Middle East and Africa. Synthetic AAEs decouple the physical flow of electricity from the financial flow. This will further increase the flexibility of contractual agreements. With respect to synthetic chaining contracts (also known as sPPAs), producers and consumers agree on a price per kilowatt-hour of electricity, as does a physical AAE. However, electricity is not delivered directly to the consumer from the power generation facility. Instead, the producer`s energy service provider (for example. B an electricity distributor) takes the electricity generated in its clearing group and acts (in the short-term electricity markets, to cite an example). The consumer`s energy supplier (for example. B, a municipal plant) obtains exactly the power profile that the manufacturer makes available to its energy service provider on behalf of the PPA consumer partner, the purchase being made on a platform such as the spot market.

In the synthetic AAE, this flow of electricity is now supplemented by what is called a differential contract. In this contract, the AAEs parties aim to compensate for the difference between the agreed price of AAEs and the actual spot market price. This means that each counterparty in the AEA has two cash flows: one with the energy service provider concerned and the other with the AAE contractor. In any event, the payments add up to the price of the AAEs set at the beginning and offer both parties the desired price guarantee.