The World Business Council for Sustainable Development (WBCSD) has released a new paper highlighting how multi-technology structures could help companies reduce risks associated with renewable Power Purchase Agreements (PPAs).
The goal of the paper is to support continuing innovation in the way companies purchase renewable power for their operations.
A multi-technology PPA covers multiple projects of different technologies (such as wind, solar, biomass, geothermal or hydro). The research within the paper investigates if and how multi-technology PPAs could offer benefits to developers and/or corporate buyers by reducing some of the risks commonly seen in PPAs.
The research found that a well-structured portfolio of projects and technologies can offer a firmer renewable generation profile compared to a single technology. As companies are evaluating different PPA options suitable for their needs, they should assess if the achievable risk reduction is enough to alter existing approaches for managing these risks and if it underpins discussions on reduced fees for the risk management.
The paper builds on previous reports on corporate PPAs including Corporate Renewable Power Purchase Agreements: Scaling up globally (26 October 2016) and Innovation in Power Purchase Agreement Structures (27 March 2018).
These reports cover the opportunities that corporate PPAs offer, the obstacles that corporate buyers and developers face as they plan and negotiate PPAs, as well as innovations in corporate PPAs as the market grows and evolves.
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