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Renewable power plant developers and suppliers alike acknowledge the client issues that are inherent in Virtual Power Purchase Agreements (VPPAs). These issues include their legal complexity, difficulties associated with derivative accounting requirements, market risks, and the fact that most do not completely understand, nor can they adequately quantify, the significant risks included in a VPPA. Almost 20 years into energy deregulation, a more client-friendly renewable product has finally become available in the market, the Renewable Retail Contract or RRC.
The RRC is designed to look and feel like a typical commercial electricity contract for the client while the behind-the-scenes structure shifts most of the risks of a VPPA to the supplier. RRCs are generally longer in term than standard retail contracts and have renewable attributes and benefits beyond simple REC purchases. Thanks to RRCs, clients can point to specific renewable energy generation assets as part of their retail power agreement while still completing a simple, straightforward procurement process.
5 helps many medium and large clients to secure long-term RRCs, many at rates that are the same or better than the standard supplier offers without the green attributes. Gone are the days when only large, sophisticated users could qualify for the programs and products necessary to meet their aggressive ESG goals.
Contact Us to learn how 5 can help your business to procure a Renewable Retail Contract for your future energy needs.