By Hidden Values Daily 
Under the terms of the agreement, Equinix will offtake power from a portfolio of rooftop solar assets, with a maximum capacity of 10MW. The assets are owned and operated by a Special Purpose Vehicle established by TEPCO and ESR Group. The deal is TEPCO’s first outside the Japanese market.
Unlike a physical PPA, a vPPA is a scheme that allows power producers to supply offtakers with power using a price-hedge mechanism to settle the difference between a fixed price and a floating price determined by a price index, rather than physically delivering the energy.
While the scheme offers more flexibility in energy procurement, critics argue that vPPAs create greater risks due to the geographical difference between where the renewable project injects power into the grid and where the offtakers’ energy use is priced, with price discrepancies between the two eroding the hedging effectiveness of the contract, creating financial shortfalls.
Equinix has five of its International Business Exchange (IBX) data centers in Singapore, and broke ground on a sixth, a 20MW facility, in November 2024, which is due to go live in Q1 2027.
The company has previously signed two PPAs in Singapore. Last December, it signed a 58.5MW solar PPA with Sembcorp, with power expected to be delivered from 2029. Before this, last April, it signed an 18-year agreement where Sembcorp Power will supply Equinix with a maximum capacity of 75MW from its solar assets and 30MW from its gas-power generation portfolio.
In addition, last year, Equinix partnered with the National University of Singapore to establish a Co-Innovation Facility at its SG6 facility, focusing on sustainable solutions for the data center sector.