Andrew Hedges, partner in the London office of global law firm Norton Rose Fulbright, has co-authored a new report on renewable Power Purchase Agreements (PPAs).
The report, ‘How multi-technology PPA structures could help companies reduce risk’, is co-authored alongside DNV GL and released by the World Business Council for Sustainable Development (WBCSD). It supports continuing innovation in the way companies purchase renewable power for their operations.
The research within the paper investigates if and how multi-technology PPAs could offer benefits to developers and/or corporate buyers by reducing some of the risks commonly seen in PPAs.
It found that a well-structured portfolio of projects and technologies can offer a firmer renewable generation profile compared to a single technology.
Andrew Hedges comments:
“Corporate buyers are getting more sophisticated in what they want from developers, particularly management of the variability of intermittent renewable generation. This paper shows that multi-technology structures could be used to support different approaches to existing risk mitigation solutions and their costs.
“In the longer term, we are looking at other physical solutions to further mitigate risk, such as corporate PPAs with solar and battery storage.”
The paper builds on previous reports on corporate PPAs that Andrew Hedges has co-authored for WBCSD, including ‘Corporate Renewable Power Purchase Agreements: Scaling up globally’ (October 26, 2016) and ‘Innovation in Power Purchase Agreement Structures’ (March 27, 2018).
Norton Rose Fulbright is at the forefront of the global corporate PPA market. The firm has advised on over 900MW of UK corporate PPAs (by capacity). The firm advised Lightsource BP on its successful signing of a corporate PPA with AB Inbev in December 2018, the first significant subsidy-free virtual PPA in the UK.
The firm also advised Allianz and Nephila Climate on the first solar proxy-revenue swaps globally for the Susan River, Childers and Nevertire solar farms in Australia.
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Norton Rose Fulbright
Norton Rose Fulbright is a global law firm providing the world’s preeminent corporations and financial institutions with a full business law service. The firm has more than 4,000 lawyers and other legal staff based in Europe, the United States, Canada, Latin America, Asia, Australia, Africa and the Middle East.
Recognized for its industry focus, Norton Rose Fulbright is strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare. Through its global risk advisory group, the firm leverages its industry experience with its knowledge of legal, regulatory, compliance and governance issues to provide clients with practical solutions to the legal and regulatory risks facing their businesses.
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