The opportunity for VPPAs in regulated markets

While there are many decarbonization strategies available for energy-consuming commercial and industrial organizations, virtual power purchase agreements (VPPAs) can potentially drive high impact, delivering benefits for both the planet and the business.

VPPAs are not an obvious choice for organizations that operate in regulated energy markets, which typically require energy consumers to purchase their energy from the local utility. But the reality is more complex. As a purely financial transaction involving no physical transfer of energy, a VPPA presents an alternative option to consider alongside other renewable energy procurement options, such as green tariff programs that may be offered by local utility companies.

This paper explains how VPPAs work, the potential benefits and considerations, and key nuances for organizations in regulated markets considering using VPPAs.