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Large-Scale Renewables Aggregation Guidance

Manage Risks During Contract Negotiations

As discussed in the section, Align on Legal, Accounting, and Risk Management Considerations, there are several key project risks and risk mitigation strategies that groups should keep in mind during these final negotiations. Groups may wish to review RMI’s report A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation to ensure that buyers understand the potential risks and incorporate any desired risk mitigation strategies into the contract.

For an aggregated PPA, some groups may want to ensure there is no joint and several liability. Joint and several liability in a PPA is when a project owner can hold PPA counterparties liable for the offtake of one of the other buyers should any one buyer default or exit from the deal. The Dutch Wind Consortium decided not to accept joint and several liability and instead negotiated a solution that allows the project developer to find an alternative buyer and continue to sell its energy without interruption. This protects both the project developer and the other buyers in the group if a single buyer defaults or exits a deal.