Microsoft offers product to reduce price risk of corporate power purchase agreements

Microsoft product lessens price risk of power purchase agreements. Microsoft has developed a new product designed to offset the price risk of corporate power purchase agreements. Working with insurance and risk specialists, the software company has developed a volume firming agreement, or VFA, for use in specially structured power purchase agreements. It is designed to address the price risks of weather fluctuations, operational risks and the intermittency of solar and wind generation resources. “VFAs effectively remove the risk related to how future weather conditions will impact the financial value of a PPA from buyers and reallocates it to people that want that risk,” says Microsoft’s Brian Janous, in a Microsoft blog post.

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