# What evidence proves a power purchase agreement for CBAM, so we can use the plant's actual electricity factor?

Canonical: https://senseible.earth/answers/cbam-ppa-evidence-for-actual-electricity-factor

A PPA counts only if it is a contract between your installation and an electricity producer for physical delivery. Bring the contract, smart meter data for production and delivery within periods of one hour at most, and written proof of a physical grid connection. An intermediary is allowed only inside one contract signed by all three parties.

## What the Commission means by a PPA

The Methodology Act describes a contract concluded directly between the installation making the CBAM good and an electricity producer, for the physical delivery of electricity. Where an intermediary is involved, the paperwork must show that one single contract was concluded between the three parties.

## The four pieces of evidence

1. Contract evidence that the PPA exists.
2. Smart meter data showing how much the producing installation generated and when.
3. Smart meter data showing an equal amount delivered to your installation within the same measurement period, which may not exceed one hour.
4. Written documentation from transmission system operators, public authorities or other reliable public sources showing a physical grid connection between the two installations.

## Where the factor comes from

An actual factor works like the embedded emissions of a precursor: another verifier has already checked it. The verifier of the producing plant must have had valid accreditation for the right sector and for indirect emissions. The opinion must read verified as satisfactory, and the report must cover the same year in which the electricity was produced.

## What does not qualify

Green certificates and a purely financial contract do not meet this test. Physical delivery is the subject of a PPA.

## What Senseible does here

Senseible reads your fuel, power and steam bills into verified emission records, so the monthly figures a monitoring plan needs are ready to hand to your verifier. Verified here means rule checks passed against the evidence. It is not third-party assurance, and a CBAM verifier still signs the report.

- [What counts as a direct link to a power plant](https://senseible.earth/answers/cbam-direct-technical-link-what-counts)
- [Green certificates and virtual PPAs](https://senseible.earth/answers/cbam-green-certificates-virtual-ppa-not-allowed)
- [CBAM Suite](https://senseible.earth/cbam-suite)

Sources: [European Commission, Guidance on CBAM verification and accreditation (24 August 2026)](https://taxation-customs.ec.europa.eu/document/download/030fe146-38e5-46b8-82b5-5f72da089a7b_en?filename=GUIDANCE%20ON%20CBAM%20VERIFICATION%20AND%20ACCREDITATION%20FOR%20VERIFIERS%20AND%20NATIONAL%20ACCREDITATION%20BODIES.pdf)

Last reviewed 2026-11-04.