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Pros and Cons of 4 “New Technologies”

Emerging Technology often does not refer to something totally new, but an old technology applied in a new way. All emerging tech needs to solve a problem for it to be viable for you. That problem might be cost savings, emissions reduction, or just being available where there were no options before. Since new things […]

October 25, 2024

VPPA Structures Part 3: Limiting Volatility

The chart below shows a very realistic scenario for an ERCOT North-settled solar VPPA in 2020, where the dollar amounts are checks that the developer would have cut to the offtaker. Some corporate buyers may look at this and say, “Sign me up!”, whereas others see a huge problem. The difference in the two outlooks? […]

October 17, 2024

VPPA Structures Part 2: Addressing Negative Price Risk

In this series, we’re detailing categories of risk in a VPPA and some structures that can minimize that risk. The first article in the series addressed max exposure and presented options for lowering the PPA price. This article addresses a specific emerging risk in the rapidly growing renewables markets worldwide, such as those in Texas, […]

October 14, 2024

VPPA Structures Part 1: Limiting Max Exposure

A virtual power purchase agreement (VPPA) is a financial agreement that carries the risk of loss. This is why legal caveats abound in literature and descriptions of these structures. The benefits of a VPPA are immense when compared to an unbundled REC purchase or a rooftop solar array. These include additionality and the ability to […]

October 7, 2024
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