Market Advisory & Supply Management

Power Purchase Agreement Negotiation

ENSURING THE PPA IS IN YOUR BEST INTEREST

Power purchase agreements (PPAs) can be an effective way to save money by securing a low electricity rate. However, negotiating the agreement can be challenging without an energy expert on your side of the table. Developers seek out customers with the promise of big savings on their energy bills. But without an expert advocating on the customer’s behalf, minor contract details can turn potential savings into increased costs.  SourceOne can represent you throughout the negotiation process to ensure that the PPA is truly in your interests.

Our team reviews key terms, contract volumes, applicable regulations, and conduct a fatal flaw analysis. We can also validate the developer’s pro forma and proposed escalation rates to evaluate the project economics and risks. As a result, you can be confident in both your negotiating position and your decision to accept or reject the developer’s offer.

If the negotiation results in an agreement, SourceOne can manage the project implementation and help secure interconnection service agreements from the local utility. Otherwise, we can advise the customer on alternative energy purchasing options that meet their needs. Our integrated expertise in energy infrastructure project development and utility rate forecasting makes us uniquely equipped to support your PPA.


 

CASE STUDIES

FINANCIAL FIRM ENERGY DATA MANAGEMENT
The world’s leading source of intelligent information for businesses and professionals saves $400,000 in annual energy costs by leveraging SourceOne's strategic commodity support and online energy management system.