Partner and National Leader, Energy, Resources & Renewables Borden Ladner Gervais Toronto, Ontario, Canada
VPPAs are often thought of as a way to hedge risk in market price fluctuations. But how effective they are at doing so relates directly to the change of law or market rule provisions - and how those provisions allocate risk between buyers and sellers. In this session, John Vellone (Partner and National Lead, Energy, Resources and Renewables at BLG) will draw from examples of risk allocations across multiple transactions across Canada to provide a range of options for both sell-side and buy-side VPPAs.
Importance: This topic provides a timely outlook on VPPA risk allocations given the recent media releases relating to the Alberta REM (Restructured Electricity Market).
Relevant nature of the topic: As a consequence of the REM changes, it is likely to be more challenging for renewable energy projects to be financed and built on the back of market forecasts on their own. How can you forecast a market when you don’t know what the rules are?
