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VPPA vs. PPA Explained: Main Benefits & Disadvantages

VPPA vs. PPA Explained: Main Benefits & Disadvantages

Virtual Power Purchase Agreements (vPPAs): A Viable Method to Decarbonize your Footprint. As we mentioned in previous articles, vPPAs can be insured or uninsured depending on your level of risk tolerance. They allow you to guarantee that a project developer will have a fixed stream of cash flows so that they can get their project financed and built. In turn, they guarantee Renewable Energy Certificates for every MWh the project produces during your contract period, giving you a simple way to…

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Why Are Virtual PPA’s Gaining Momentum So Quickly?

Why Are Virtual PPA’s Gaining Momentum So Quickly?

The virtual power purchase agreement (vPPA) has a substantial role in enabling off-site clean energy procurement. We wanted to explain to renewable energy buyers how the vPPA works and what has made it so popular. Uninsured PPAs: If you’re looking to procure wholesale energy, you may come across the vPPA as an off-site power purchase agreement (PPA) mechanism: A virtual power purchase agreement (PPA) is simply a type of PPA where the energy buyer does not own the physical electrons…

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