Virtual Power Purchase Agreement Project

In this section, you define the functions that calculate the project economics and emissions offset related to a 30MW virtual power purchase agreement (vPPA). VPPA's are typically multiyear projects where a customer agrees to purchase renewable power at a fixed rate from a vendor. The “virtual” designation means the power is not physically delivered to the customer. Instead, the difference between the vPPA fixed rate and customer's local energy market price are settled through a contract of differences. The customer also typically receives the Renewable Energy Credits (RECs) or Guarantees of Origin (GOs) associated with the renewable energy generated from the project.

The calculations are completed in the following functions:

Calculate vPPA Incremental Cash Flow

This Calculation function is used to calculate the incremental cash flow (ICF) for the vPPA project.

This function uses the Power Purchase Agreement Data function as input and performs the calculation using the rule R0001 – Incremental Cash Flow.

Join vPPA with Emissions Data

This Join function joins the ICF data from the Calculate vPPA Incremental Cash Flow function with emission factors and the discount rate specific to the project. The system uses a set of rules to calculate the total project emissions offset.