INSIGHTS

Evaluating renewable PPAs without an in-house energy team

A growing share of corporate energy buyers are signing renewable PPAs without an in-house energy team to evaluate them. That creates real risk for procurement and finance leaders being asked to commit to long-term contracts in a specialised market.

Start with the objective

A PPA can serve different goals: Scope 2 reduction, price stability, additionality, reputation, or long-term energy supply. The right structure depends on what the buyer is actually optimising for.

Terms that deserve close attention

  • Volume risk and shaping
  • Basis risk between project settlement price and retail electricity cost
  • Curtailment treatment
  • Change-in-law provisions
  • Termination liability

A reasonable process

Buyers should define objectives clearly, run a structured RFP, stress-test economics across multiple price forecasts, and use energy-specific technical, commercial, and legal review before signing.

If you are evaluating a renewable PPA and want an independent second opinion, contact Aldera.

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