Negotiating Commercial Terms and Mitigating Risks in Virtual Power Purchase Agreements in The United States

Kingsley Osei, Lead Project Counsel, New York State Large Renewable Energy Consortium, USA

In 2019, commercial and industrial purchasers (C&I), particularly in the United States (U.S.), signed record renewable energy deals with third-party developers through power purchase agreements. Worldwide contracts that were signed from January to June totalled 8.6 GW (up from 7.2 GW) during the same period in 2018. C&I deals are often packaged as new build projects bundled with renewable energy credits ("R.E.C.s”) or unbundled R.E.C.s only transactions procured from third party-owned renewable energy projects.

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USA Contract Energy December 2020 Vol.13, No. 53, Autumn 2020

Kingsley Osei

Kingsley Osei is Lead Project Counsel to the New York State Higher Education Consortium Large Scale Renewable Energy Project ("NYHE"). NYHE is a consortium of twenty-one universities and colleges in New York that are load-serving entities on the NYISO power market that will within the next three years transition up to 1000MW (100%) of their power load requirements to renewable energy sources through third-party financed and owned large scale renewable energy projects. https://system.suny.edu/capital-facilities/energy-management/sustainability/ny-he-lsre-large-scale-renewable-energy/

New York State Large Renewable Energy Consortium

Consortium of twenty-one institutions of higher education in New York transition their energy load of up to 1000MW through the aggregated new build of renewable energy power projects.

USA Contract Energy December 2020 Vol.13, No. 53, Autumn 2020