Corporate PPAs with variable price structure achieve higher performance

Researchers in Portugal have simulated 800 power purchase agreemeents across eight different contract type and have found that contracts with a variable price structure achieve higher performance. Their analysis considered net present value, contract performance deviation and volume residual as the main indicators. A team of scientists in Portugal has assessed the performance of several corporate power purchase agreement (CPPA) structures and has found that contracts based on a variable price structure achieve higher performance, while those based on fixed-hourly profiles offer the lowest performance. ...

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