Alternus Energy SPAC Presentation Deck
OFFTAKE CONTRACT TYPES - FIT VS. PPA
Feed-in-Tariff (FIT)
A Feed-in Tariff (FiT) is a renewable energy payment that is a policy mechanism designed to
accelerate investment in renewable energy technologies
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W
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It provides the investor with a purchasing guarantee that stipulates a fixed price over the economic life
of the power plant
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This is achieved by offering long-term government-backed contracts to renewable energy producers,
typically based on the cost of generation of each technology
The duration of the FiT varies between 8-25 years depending on the country, region and technology
The FiT rate is not uniform across all renewable energy generating technologies and varies based on
numerous criteria and costs
Power Purchase Agreement (PPA)
All current PPAs for Alternus operational parks are contracted with a utility or energy supplier as the
counterparty. Currently ALTN benefits from both a FiT and PPA payment for its Italian operational
assets. The company also benefits from a PPA payment as well as Green Certificates for its
operational assets in Romania
In Italy and Germany Alternus current operational parks benefit from a 20-year government-backed
FIT under the Conto Energia and EEG respectively. In the Netherlands Alternus operational park
benefits from a 15-year government-backed FIT under the SDE+ mechanism
A utility PPA is the most common form of PPA, whereby an energy generator enters into an
agreement with an energy supplier/utility to purchase the energy produced by the generator
The contract will stipulate that the generator delivers the power to the energy supplier/utility where
the project is physically connected to the grid network
The terms of the contract can vary depending on the requirements on the energy generator, but it
can be arranged that the energy generator is paid a fixed price per kWh of energy produced
The length of the contract can vary and depends on the requirements of the energy generator but
generally can be anywhere between 3 up to 10 years
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Energy produced by the Solar
Park owned and operated by the
SPV is fed into the National
Electricity Grid
The SPV is paid a FEED-IN-TARIFF
by the relevant Government Body
for every KWh of energy produced
by the Solar Park
The utility/energy supplier
contracts separately with the
end user customer directly
The electricity grid network
delivers electricity to the end
user under a contract with a
utility/energy supplier
ALTERNUS
ENERGY
The SPV has a PPA in place with a
utility/energy supplier for the energy
produced by the solar installation
and is paid a fixed price per kWh of
energy produced
Utility/Energy Supplier
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Appendix 39
Alternus Energy is the parent
company that owns the SPV
The SPV owns and operates
the Solar Park
ALTERNUS
NERG
Alternus Energy is the parent
company that owns the SPV
The SPV owns the solar park
which feeds energy produced
directly into the electricity
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