Virtual Power Purchase Agreements
What Are Power Purchase Agreements?
Power Purchase Agreements are contracts for the energy, capacity and/or environmental attributes generated by a renewable energy project. There are two types of Power Purchase Agreements: a physical delivery contract or a virtual contract.
- A physical contract means the purchaser will physically and directly receive the power produced by the contracted project. Physical contracts are primarily used by utilities and other power suppliers.
- A virtual contract means the purchaser only purchases the environmental attributes, or the Renewable Energy Credits (RECs) produced by the project. The purchaser of a virtual contract does not receive the power generated by the project. Virtual contracts are commonly used by corporations to fulfill sustainability goals. Virtual contracts are also effective risk-mitigators and help protect against rising electric costs.
How A Virtual Power Purchase Agreement Works
What Are the Benefits of Virtual Power Purchase Agreements?
Virtual Power Purchase Agreements (VPPAs) offer several benefits for corporate customers. At a high level, VPPAs provide predictability, decreased volatility and cut costs related to electric expenses. Geronimo VPPAs never require upfront investment, making the decision to contract simpler. Geronimo’s high value projects are also additive, which offers customers the ability to not only attain corporate sustainability goals, but also promote green branding.
Geronimo Offers Singular or Aggregated Virtual Power Purchase Agreements
Geronimo Energy develops small to large-scale renewable energy projects, ranging in size from 1 MW to 600 MW. For customers with large electric consumption, our large-scale, singular Virtual Power Purchase Agreements (VPPA) are an ideal way to hedge costs and meet sustainability goals. For customers with geographically distributed electric consumption (or less overall electric load), our aggregated VPPAs offer smaller offtake opportunities (typically 10 MW blocks) that can be mixed and matched throughout our U.S. project portfolio.
With projects located in 20 states throughout the country, Geronimo has the right project, in the right location for your needs. As an experienced renewable energy company, Geronimo has worked within and across Regional Transmission Operator (RTO) and Independent Service Operator (ISO) regions. Projects are available for settlement within their physically located region, or in nearby regions, should a settlement across borders be desired. If your electric load is geographically dispersed, consider a VPPA from a handful of projects to align best with your power consumption. Whatever your needs, whatever your reason for pursuing a VPPA with a renewable energy project, Geronimo’s creative, expert staff and our abundant project portfolio has a solution for you and your organization.