Comparison
Physical PPA vs Virtual PPA: contractual and accounting differences
A physical PPA delivers electricity; a Virtual PPA (vPPA) is a financial swap referencing a production volume. This article compares both structures contractually, accounting-wise and from a regulatory standpoint, without referring to any specific player.
| Criterion | Voltarione | Virtual PPA (vPPA) |
|---|---|---|
| Flow type | Physical energy delivered | Financial differential (CfD) |
| Cross-border | Limited by interconnections | Possible (market-price reference) |
| Accounting treatment | Energy purchase (IFRS 15) | Financial instrument (IFRS 9) |
| Guarantees of origin | Tied to delivery | Issued and transferred separately |
| RE100 / Scope 2 reporting | Eligible with GoOs | Eligible with GoOs |
| Main regulatory framework | National energy code | EMIR / MiFID II |
FAQ
Which model do multi-country data centers favor?
vPPA lets a buyer financially hedge a site in one country while sourcing energy from another country, which is rarely possible in physical form.
Is a vPPA a financial instrument?
In several European jurisdictions, yes: it falls under EMIR with reporting and clearing obligations to assess case-by-case with legal counsel.