PPA: “We're building lasting partnerships with hyperscalers”

As Director of Power Markets and PPA at OX2, Olli Hagqvist structures and negotiates long-term power agreements with hyperscalers and other major corporates. As demand for electricity grows, these large companies are increasingly turning to long-term Power Purchase Agreements (PPAs) to secure reliable, clean electricity.

OX2 has been facilitating such agreements for more than a decade, from our first PPA with Google in 2013 to our most recent ones with Amazon and Apple, announced in October this year. Olli explains how we best support our clients by structuring PPAs that fit their needs:

Olli Hagqvist, Director of Power Markets and PPA at OX2

Why do hyperscalers come to OX2? What do they need, and what can we provide?

First, they need large volumes of electricity to power their operations. But they’re also looking for added value. One of the main things we offer is helping them reach their net-zero targets, offsetting emissions from their own operations and, in some cases, their customers.

They also value additionality. This means ensuring their PPAs enable new renewable capacity to be built. These buyers typically prefer projects where the final investment decision hasn’t yet been made, since by signing the PPA they make the project possible and bring additional renewable energy into the system.

This, in turn, allows us to invest in and retain ownership of new projects, knowing we have a reliable long-term partner along the way. It’s a genuine win-win.

What are the different types of PPAs, and how do they work? 

PPAs can be either virtual or physical. A virtual PPA is a financial agreement rather than a physical delivery of electricity, meaning consumption doesn’t have to be in the same location as the project.

Because of our diversified portfolio, we can offer flexible contracts across different markets and technologies, which in turn gives the buyer diversification of their PPA portfolio as well.

Are diversification and flexibility something that sets OX2 apart?

Yes, absolutely. We have coverage across multiple European markets and Australia, as well as across several technologies. That combination allows us to structure more bespoke PPAs.

Different technologies, such as solar and wind, have distinct generation profiles. By combining them, and adding battery storage, we can create tailored contracts that offer more balanced and predictable delivery compared to single-technology PPAs.

In addition, being backed by EQT gives us strong financial stability, which further supports long-term partnerships.

How do these companies view OX2?

We’re seen as a reliable and capable partner. We’ve built recurring relationships with many international companies, delivering projects across various markets and technologies.

They value our ability to deliver, our diversified portfolio, and our solid financial backing. Over time, we’re building lasting partnerships with hyperscalers through flexible renewable energy solutions. 

You will be at the RE-Source conference in Amsterdam in early November, will you meet these companies there? 

Absolutely. We’ll meet many international companies, including hyperscalers. We’ll discuss how we can support their net-zero goals through traditional PPAs but also look beyond them. By combining different generation technologies and battery storage, we can offer hybrid PPAs. These go beyond the traditional model by adding flexibility and dispatch capability.

This kind of hybridization and bespoke structuring will be at the core of our conversations in Amsterdam.