Align on Legal, Accounting, and Risk Management Considerations

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Large-Scale Renewables Aggregation Guidance

Align on Legal, Accounting, and Risk Management Considerations

The Alignment II section of the Procurement Alignment Tool is designed to help groups align on legal, accounting, and risk management issues. After each participant has filled in their section individually, the group should discuss any potential legal barriers and the desired accounting methodology.

Groups should also align on whether to request specific risk mitigation strategies in the RFP. These include retailer-firmed generation, production guarantees, proxy generation, hub/node settlement, and price floors, ceilings, or collars. More information about these and other risk mitigation strategies are included in A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation.

A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation

What is it? An overview of strategies to help mitigate risk when pursuing a physical or virtual PPA, ranging from provisions to include in an RFP to supplemental contracts with third parties.

When to use it? This report can help local governments identify which risk mitigation strategies to pursue as part of, or in addition to, an off-site PPA. Individual buyers should review the primer before aligning as a group. Some of these strategies can be undertaken individually, while others will be most effective if all buyers choose to pursue them together. Buyers may wish to identify a requirement, or preference, for collectively desired risk mitigation strategies within their RFP.

The video below presents a high-level summary of the Off-Site Renewable PPA Risk Mitigation Report, including some common risks in the off-site renewable PPA procurement and related risk mitigation strategies.

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