A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation

The document identifies off-site renewable power purchase agreements (PPAs) as a primary procurement method for US local governments aiming for 100% clean energy, while warning that the wholesale market nature of these agreements introduces specific financial and operational risks. It categorizes these risks into six types—price, basis, non-energy market, shape, operational, and volume—and offers nine mitigation strategies tailored to virtual and physical PPAs.

• Off-site renewable power purchase agreements (PPAs) are a primary tool for US local governments to reach clean energy goals because they offer scope, flexibility, and function as a financial hedge.
• Off-site PPAs involve wholesale market intricacies and financial risks that are not found in other renewable energy procurement strategies, which may be unfamiliar to local governments.
• The guide identifies six specific categories of risk for off-site PPAs: price, basis, non-energy market, shape, operational, and volume.

APA

RMI (2021). A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation. https://rmi.org/resources/a-local-governments-guide-to-off-site-renewable-ppa-risk-mitigation/

Chicago

RMI. A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation. 2021. https://rmi.org/resources/a-local-governments-guide-to-off-site-renewable-ppa-risk-mitigation/.

Wikipedia

{{cite report |author=RMI |title=A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation |date=25 March 2021 |url=https://rmi.org/resources/a-local-governments-guide-to-off-site-renewable-ppa-risk-mitigation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2021local, author = {{RMI}}, title = {{A Local Government’s Guide to Off-Site Renewable PPA Risk Mitigation}}, institution = {RMI}, year = {2021}, month = mar, url = {https://rmi.org/resources/a-local-governments-guide-to-off-site-renewable-ppa-risk-mitigation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }