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A CORPORATE PURCHASER’S GUIDE TO RISK MITIGATION
The US corporate renewable energy market has expanded rapidly, with over 6 GW of announcements in 2018 alone, yet risk mitigation tools have not kept pace. The document identifies five key risks unfamiliar to corporate buyers—price, basis, shape, volume, and operational risk—and proposes a "many-sizes-for-all" approach. It outlines eight specific mitigation solutions, including five within the virtual power purchase agreement (VPPA) construct (hub-settled VPPAs, floors and collars, proxy generation, volume firming agreements, and fixed volume swaps) and three outside it (long-term REC agreements, project tranches, and contract tranches).
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Document type: Executive summary