May 15, 2018

GERONIMO BLOG: Protect Your Organization Against Electric Cost Increases with a Virtual Power Purchase Agreement (VPPA)

We know that corporate sustainability goals benefit the environment by supporting projects that improve the Earth’s air and water quality – sustainability makes social sense. But many companies are now discovering that investing in renewable energy also makes financial sense.

Virtual Power Purchase Agreements (VPPA) for renewable energy projects offer protection against rising future electric prices. They also offer predictable electricity budgets and may even present a profit based on the net present value of the contract.

How Does a VPPA Protect a Company Against Future Electric Cost Increase?

Affordability – With current tax incentives set to expire in coming years, the time has never been better to invest in renewable energy. Companies that take advantage of the reduced prices offered as a result of the Production Tax Credit (PTC) and the Investment Tax Credit (ITC) now stand to gain affordable, long-term clean energy in the future. Plus, thanks to technology advancements, both wind and solar energy prices have decreased significantly in recent years, making renewable energy VPPAs even more affordable.

Predictability – With a VPPA, the buyer and seller agree to a fixed market price (strike price) for the power produced by the contracted project. Over the life of the VPPA, as wholesale energy market prices change, settlements are paid out based on the fixed price to either the buyer or the seller. This VPPA hedge, in turn, stabilizes the net price for the company over the life of the  agreement, allowing for increased predictability and decreased volatility.

Profitability – With a VPPA, there is no upfront investment. Best of all, most companies find that the net present value (NPV) of their contract savings actually offers a profit in the here and now.

VPPAs offer buyers the benefits of affordability, predictability and profitability. Sustainability and renewable energy contracts are no longer just mechanisms for social change and environmental stewardship. Clean energy projects and VPPAs are methods for companies to save money, cut costs, and plan for the future.

Learn more about Geronimo Energy and our projects.


Stay In "The Know"

Keep up to date with industry
news and information by
signing up for our corporate
communications. It's FREE.



Please contact us anytime!



September 23-29

Climate Week NYC 2019

New York City, NY

Climate Week continues to grow as the time and place for the world to showcase amazing climate action and discuss how to do more. Meet us there for a week-long series of events reflecting the core pillars of the UN’s summit!

September 23-26

Solar Power International and Energy Storage International

Salt Lake City, UT

North America Smart Energy Week, which hosts Solar Power International and Energy Storage International, is the largest gathering of solar, smart energy, energy storage and hydrogen fuel cell professionals in North America. Join Geronimo Energy for four days of networking, education, and innovation that moves the industry forward!

October 6-9

EEI National Key Accounts Workshop

Las Vegas, NV

Come join us at the EEI National Key Account Workshop as we expand our knowledge on energy in the marketplace and dive deeper into technology, managing energy, sustainability, supply, and fundamentals of energy during various breakout sessions.

October 8

Great Plains and EmPower North Dakota Energy Conference

Bismarck, ND

Great Plains and EmPower North Dakota Energy Conference will explore diverse energy topics on the state, regional and national level. Meet Geronimo Energy in Bismarck for the 13th year of this event!

October 8-10

NAEMA 2019 Fall Conference

Scottsdale, AZ

The North America Energy Markets Association (NAEMA) 2019 Fall Conference will cover key issues by industry experts and thought-leaders. Head to Arizona to learn and network at this regional event.

October 8-11

MMEA 2019 Fall Conference

Acme, MI

The Michigan Municipal Electric Association (MMEA) 2019 Fall Conference is set to focus on all things renewable in Michigan. Join Geronimo Energy as we develop our knowledge on Michigan’s relationship with renewable energy.

October 10-11

AWEA Wind Energy Finance & Investment Conference

New York, NY

Geronimo Energy is headed to American Wind Energy Association (AWEA) Wind Energy Finance & Investment Conference in New York City for high impact meetings, innovative sessions, and cutting edge education to cultivate business connections with top bankers, financial leaders, developers, and corporate decision makers leading the industry forward.

October 15-16

GCPA Fall 2019 Conference

Austin, TX

The Gulf Coast Power Association (GCPA) Fall 2019 Conference is the power industry’s leading electric power conference for the ERCOT and Gulf Coast regions. Geronimo Energy is looking forward to getting updated on the latest energy developments in ERCOT.