The goal of this paper is to support continuing innovation in the way companies purchase renewable power for their operations.
A multi-technology power purchase agreement (PPA) covers multiple projects of different technologies (such as wind, solar, biomass, geothermal or hydro). The research within the paper investigates if and how multi-technology PPAs could offer benefits to developers and/or corporate buyers by reducing some of the risks commonly seen in PPAs.
The research finds that a well-structured portfolio of projects and technologies can offer a firmer renewable generation profile compared to a single technology. As companies are evaluating different PPA options suitable for their needs, they should assess if the achievable risk reduction is enough to alter existing approaches for managing these risks and if it underpins discussions on reduced fees for the risk management.