The first phase of executing a virtual power purchase agreement focuses on laying the groundwork for a successful transaction. Spending the time to understand market conditions, research key issues in off-site PPAs, and build a team will prepare you to successfully find a project and execute a transaction.
PROCUREMENT GUIDANCE MENU
Virtual PPA
Research and Build Team
Estimated Time to Complete:
3 – 6 months
1.
Understand Price Risk
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Review what price risk is and its role in creating uncertainty in VPPA financial performance
3.
Evaluate Potential Regions and Technologies
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Consider the four critical dimensions that will impact a VPPA in different markets
5.
Consider How to Manage RECs
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Evaluate how your government will handle renewable energy certificates
2.
Understand Basis Risk
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Review what basis risk is and how it can impact financial performance
4.
Understand Legal and Accounting Risk
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Review steps to evaluate potential legal and accounting risks of VPPAs and how to address them.
6.
Build a Deal Team
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Build a team with the experience and skills to address key issues
1.
Understand Price Risk
Learn More
Review what price risk is and its role in creating uncertainty in VPPA financial performance
2.
Understand Basis Risk
Learn More
Review what basis risk is and how it can impact financial performance
3.
Evaluate Potential Regions and Technologies
Learn More
Consider the four critical dimensions that will impact a VPPA in different markets
4.
Understand Legal and Accounting Risk
Learn More
Review steps to evaluate potential legal and accounting risks of VPPAs and how to address them.
5.
Consider How to Manage RECs
Learn More
Evaluate how your government will handle renewable energy certificates
6.
Build a Deal Team
Learn More
Build a team with the experience and skills to address key issues