Negotiating Commercial Terms and Mitigating Risks in Virtual Power Purchase Agreements in The United States
Abstract
In 2019, commercial and industrial purchasers (C&I), particularly in the United States (U.S.), signed record renewable energy deals with third-party developers through power purchase agreements. Worldwide contracts that were signed from January to June totalled 8.6 GW (up from 7.2 GW) during the same period in 2018. C&I deals are often packaged as new build projects bundled with renewable energy credits ("R.E.C.s”) or unbundled R.E.C.s only transactions procured from third party-owned renewable energy projects.