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PPA Settlement Price Difference

Compute a signed contract-minus-reference PPA settlement leg for explicitly supplied energy, without selecting contract payment direction or other terms.

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Description

Calculate a supplied PPA price-difference settlement term.

Energy prices and charges depend on energy units, demand units, standing-charge days, tariff periods and settlement sign conventions. Purchased-energy losses differ from delivered-energy fractions, and signed prices can produce negative monetary terms. Nominal battery cost allocations are supplied scenarios rather than physical aging forecasts.

Calculate a supplied PPA price-difference settlement term.

When to use this tool

Use PPA Settlement Price Difference when you already have contractPricePerEnergy, referencePricePerEnergy, settledEnergy and need to calculate a supplied PPA price-difference settlement term.

How to use the tool and how it works

  1. Enter contractPricePerEnergy, referencePricePerEnergy, settledEnergy. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read priceDifference, settlementAmount. Use the output convention below.

Require settledEnergy>=0; difference=contractPricePerEnergy-referencePricePerEnergy, amount=difference*energy.1

Input fieldMeaning and unitsAccepted input
contractPricePerEnergyContract Price Per EnergyRequired. Finite number.
referencePricePerEnergyReference Price Per EnergyRequired. Finite number.
settledEnergySettled EnergyRequired. Finite number; minimum 0.
Output fieldInterpretationReturned shape
priceDifferencePrice DifferenceRequired. Finite number.
settlementAmount(contract-reference price)*settledEnergy under this supplied sign convention; no payer is inferred.Required. Finite number.
json
{
  "input": {
    "contractPricePerEnergy": 60,
    "referencePricePerEnergy": 50,
    "settledEnergy": 100
  },
  "output": {
    "priceDifference": 10,
    "settlementAmount": 1000
  }
}

Limitations and assumptions

  • Prices may be signed. The sign follows this chosen subtraction; actual payer, contract, basis adjustments and settlement obligations are not determined.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Reconcile the actual meter series, tariff, contract and billing definitions for an account or market question. Use a complete cash-flow or physical-energy model when needed; a single block overlap, index ratio or supplied settlement term cannot establish actual charges or performance.

References

  1. Calculation and input contract: energy-economics/ppa-settlement-price-difference — tool.io

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