Hidden risks for corporates in renewable energy PPAs
Buyers face load, covariance and basis risks in typical agreements
Robert Stephens is a partner in the energy and global finance practice groups at Sidley Austin, and represents financial institutions and energy companies in a wide range of energy finance and hedging transactions.
Corporate sustainability programmes have been manna to renewable energy development in the US, with corporate buyers purchasing more than three gigawatts (GW) of output from new projects in 2015 alone.1 But the surge in demand is often producing deal terms that favour developers
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