With a PPA, one party will pay the other the difference between the wholesale energy price and the predetermined PPA price. If energy prices are lower than the PPA price, the buyer will pay the developer; but if energy pool prices are higher than the PPA price, the developer will pay the buyer. In either case, the buyer earns renewable energy certificates and the right to say that they’re powered by renewable energy. PPAs are inherently risky—depending on power pool prices in the market where the project is located, the buyer might win or lose money on the deal. But there are various ways to mitigate that risk. Contact us at business@bullfrogpower.com to learn which risk mitigation strategies will benefit your business.
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