Tag: PPA

In case you missed it: Our Insights from ‘Navigating Volatility: The Shift Toward Transparency in the US PPA Market’

Posted on February 12, 2026 by - Blog

Navigating Volatility - recap of REsurety x S&P Webinar

by Emma Marjollet, Customer Success Manager, REsurety

Owen Glubiak (VP, Market Development, REsurety Markets) introduces CleanTrade, a CFTC-registered platform, at our February 5th collaborative webinar with S&P Global Energy.

The US clean energy market has reached a critical maturity point, with upwards of 350 GW of operational capacity. However, this growth is colliding with extreme price volatility and policy uncertainty. 

To meet this moment, S&P Global Energy Platts has partnered with REsurety to provide daily price assessments powered by CleanTrade transaction data, providing the real-time transparency necessary to navigate today’s market complexity.

We kicked things off with a webinar detailing how this can be transformative for the industry, where S&P Global Energy’s Associate Director of Price Reporting Annalisa Jeffries put it best: “In today’s volatile market, you can no longer ‘set it and forget it.’ Transparent, daily price signals are the only way for buyers and developers to accurately price risk amid shifting policy and congestion.” 

While corporate procurement continues to accelerate at a 30% CAGR, the industry is hampered by “pre-2000s” workflows – think fragmented emails, opaque pricing– that lead to capital slippage and nine-month deal cycles. The central takeaway from our discussion is clear: to sustain momentum, the industry must transition from manual deal-making to a more transparent, data-driven transaction infrastructure that meets the market where it is today.  

What we learned:

Policy Pressures & the ‘Construction Cliff’:

Shifting federal policies are fundamentally altering clean energy project economics. The OBBB (One Big Beautiful Bill) deadline of July 4, 2026, is a primary pressure point, requiring projects to commence physical construction to qualify for full tax credits. This “safe-harbor” race injects timing risk and forces developers to negotiate Power Purchase Agreements (PPAs) after making major CAPEX decisions.

Surging Demand vs. Supply-Side Headwinds:

Massive demand from AI and data centers is reshaping PPA volumes, with hyperscalers leading multi-GW procurements. “In 2025, 80% of the corporate procurement in terms of volumes that were announced were actually from hyperscalers—in particular, the four largest hyperscalers,” noted Bruno Brunetti, Head of Renewable Revenue Streams at S&P Global Energy Horizons. Conversely, supply is hampered by transmission congestion and interconnection queues. While solar and Battery Energy Storage Systems (BESS) are surging, onshore wind outlooks have weakened due to local opposition and early tax credit sunsetting.

The Rising Cost of De-Risking:

PPA prices are trending upward across all ISOs. Developers are now factoring in a $2-3/MWh premium to comply with Foreign Entity of Concern (FEOC) rules and new tariffs as they de-risk their supply chains. In active markets like ERCOT, solar as-generated hedge prices have seen a $10/MWh
year-over-year increase.

The Rise of Short-Term PPAs:

As more projects roll off their original contracts from the early 2010s era, many developers are left holding financial risk from merchant capacity. Combined with the surging demand from the buying community, 1-5 year PPAs for operational projects have become an increasingly effective tool.

Digital Trading, meet Renewables:

Developers, traders, and corporate buyers require a 21st century risk management tool to separate the ‘signal’ from the ‘noise’ to meet their goals. To support this, S&P Global Energy Platts has partnered with REsurety to provide daily price assessments powered by CleanTrade—the first and only CFTC-registered Swap Execution Facility (SEF) for as-generated clean energy. Additionally, this shift provides the real-time, verifiable data needed to move beyond the “Rolodex” era of trading.

It’s clear the clean energy market has reached a tipping point where speed must meet the scale, and CleanTrade by REsurety is the solution.

Watch Full Replay of Webinar Today:

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Basis Risk can Sink Projects and PPAs

Posted on February 10, 2026 by - Blog

Navigating the Hub-Node Gap with Creative Contracting.

There is no single price of electricity in the United States. While the price of a barrel of oil is set nationally, electricity is set locally – and fluctuates based on grid mix, time of day, and many other factors in a given region. As we’ve discussed in our Forecasting Webinar and our recent blog on the impacts of Venezuelan oil on clean energy prices, all energy market dynamics are interrelated. So when it comes to deciding whether to build or invest in a clean energy project like a solar or wind farm, the difference in electricity prices by region, and volatility in price over time, make all the difference for project success.

What do local price dynamics have to do with a solar farm’s ability to pay back its loans over time? The devil is in the details. And the details are called basis risk.

Background: The US electricity system’s hub + node structure

The US electricity system is made up of tens of thousands of nodes, where load and generation connect to transmission and distribution lines to form a giant, interconnected grid. A node may be a single solar plant, a collection of gas turbines, a datacenter, or a substation feeding thousands of homes. Each of these nodes has its own power price. 

Groups of nodes are organized into hubs. Hubs are virtual trading points, where the price is the average of all the nodes within the hub. (An example of a hub)

Most power purchase agreements (PPAs), where corporates or utilities agree to long-term contracts to buy power, are settled at the hub. Every month, the contract is settled by calculating how much money the developer would have made from selling their power to the grid at the hub price, how much money the developer is  guaranteed by the PPA signed with a corporate or utility buyer, and “settling” the difference. If market prices were low one month at that hub, the buyer sends the developer money to get them to their guaranteed PPA revenue. If prices were high one month, the developer sends the buyer the extra money that came in the door.

In this article, we’ll walk-through an example of a real project and make the math behind settling clear. We’ll show how risk is shared between developers and buyers, and how to share risk to increase success. 

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Basis Risk can Sink Projects and PPAs

Posted on February 10, 2026 by - Uncategorized

Navigating the Hub-Node Gap with Creative Contracting.

There is no single price of electricity in the United States. While the price of a barrel of oil is set nationally, electricity is set locally – and fluctuates based on grid mix, time of day, and many other factors in a given region. As we’ve discussed in our Forecasting Webinar and our recent blog on the impacts of Venezuelan oil on clean energy prices, all energy market dynamics are interrelated. So when it comes to deciding whether to build or invest in a clean energy project like a solar or wind farm, the difference in electricity prices by region, and volatility in price over time, make all the difference for project success.

What do local price dynamics have to do with a solar farm’s ability to pay back its loans over time? The devil is in the details. And the details are called basis risk.

Background: The US electricity system’s hub + node structure

The US electricity system is made up of tens of thousands of nodes, where load and generation connect to transmission and distribution lines to form a giant, interconnected grid. A node may be a single solar plant, a collection of gas turbines, a datacenter, or a substation feeding thousands of homes. Each of these nodes has its own power price. 

Groups of nodes are organized into hubs. Hubs are virtual trading points, where the price is the average of all the nodes within the hub. (An example of a hub)

Most power purchase agreements (PPAs), where corporates or utilities agree to long-term contracts to buy power, are settled at the hub. Every month, the contract is settled by calculating how much money the developer would have made from selling their power to the grid at the hub price, how much money the developer is  guaranteed by the PPA signed with a corporate or utility buyer, and “settling” the difference. If market prices were low one month at that hub, the buyer sends the developer money to get them to their guaranteed PPA revenue. If prices were high one month, the developer sends the buyer the extra money that came in the door.

In this article, we’ll walk-through an example of a real project and make the math behind settling clear. We’ll show how risk is shared between developers and buyers, and how to share risk to increase success. 

Basis risk puts revenue at risk: real world example

Let’s look at a wind project in SPP South, at an anonymous location in Oklahoma. For this project, and many others like it in the region, node prices were often lower than hub prices in 2025, exposing the developer to basis risk. Let’s make the following typical assumptions about the project to determine the impact of basis:

  • The project has a PPA that settles at the hub
  • The fixed PPA price is $20/MWh
  • The project curtails (stops generating) for when hub prices are below $0/MWh (i.e., negative)

Bad basis reduced project revenue by over 60% in 2025

As shown above, the developer made roughly $0.6M in January from the PPA after settlement (blue line), with some variation month-to-month based on their total generation (i.e., how hard the wind blew). However, they lost roughly $1.3M in January due to large negative basis (red line, caused by nodal prices being below hub prices), leaving them at a loss of roughly $0.6M (yellow line) for the month. The negative basis continued until August, leaving the developer with $4.4M less revenue in 2025 than they earned from the PPA, a 65+% drop. This erases any profit margin for the project, leaving it deep in the red and at risk of defaulting on loans.

Despite this wind project performing very well, the developer can’t meet financial goals – putting the PPA at risk. Shouldn’t there be a way to share risk between the developer and the corporate purchaser to avoid this issue?

The answer is yes – and folks are getting creative with how. One option is to settle at the node, but this passes all risk to the buyer. Another option is to share basis risk between developer and buyer, which can require complex modeling & contracting. REsurety’s services team helps customers with these questions all the time. 

Contract clauses are one of many solutions to navigating a changing grid

As the grid continues to change, a tailored, risk-mitigating approach like basis sharing is essential for supported long-term financial health of clean energy projects. These clauses protect developers from bankruptcy and ensure the continued generation of RECs for the offtaker, making them a balanced and increasingly common feature in modern PPAs.

Stay tuned to learn more about typical contract clauses to share basis risk between developers and buyers, and to learn more about additional approaches to solve basis risk like on-site BESS, behind-the-meter datacenters, and financial transmission right (FTR) trading. Until then, if you need advice on your current basis clauses – reach out!

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Navigating volatility in the US PPA Market: Market insights, pricing trends, and the need for more transparency

Posted on January 21, 2026 by - Event, Webinar

Navigating Volatility in the US PPA Market: Webinar
Sign Up Here

Join REsurety on February 5th at 1 PM in Partnership with S&P Energy.

Hear from: Owen Glubiak, Vice President of Business Development, Rob Keene, Senior Director, Bruno Brunetti, Director, Head of Renewable Revenue Streams and Annalisa Jeffries, Associate Director, Price Reporting.

The US Power Purchase Agreement (PPA) market is undergoing rapid transformation, with volatility fueled by shifting policies, commodity price swings, and evolving buyer demand. Price transparency is essential to navigate through this uncertainty for developers, buyers, financiers and anyone else transacting in the PPA markets. 

This February, join experts from S&P Global Energy Horizons, S&P Global Energy Platts, and REsurety for an in-depth webinar exploring the current status of the US PPA market—the drivers, who’s contracting clean energy, which technologies are leading the way and what trends we are likely to see. 

As we gear up to launch new price assessments including transactional data from REsurety’s CleanTrade platform—the first CFTC-approved marketplace for as generated clean energy—we will also showcase exclusive pricing insights and trends to help you navigate this dynamic environment.

Key Takeaways:

  1. Gain Clarity in a Volatile Market: Learn how enhanced price transparency and real-time data can empower energy market participants to make informed decisions amid rapid change.
  2. Identify Key Market Movers: Discover which organizations are actively contracting clean energy and which technologies are shaping the future of US PPAs.
  3. Leverage New Pricing Intelligence: Preview actionable pricing trends and insights from CleanTrade to stay ahead in contract negotiations and market strategy.
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3 Ways to Maximize the Effectiveness of Your Renewable Energy PPAs

Posted on April 15, 2025 by - Blog, Resources, White Paper

3 Ways to Maximize the Effectiveness of Your Renewable Energy PPAs

A playbook by REsurety, published by Utility Dive

3 Ways to Maximize the Effectiveness of Your Renewable Energy PPAs

To help meet their sustainability goals, more and more companies are signing clean energy power purchase agreements (PPAs). While long-term contracts such as PPAs can help companies hedge price risk in the long term, they may also result in significant short-term losses if not designed and monitored carefully.

Unfortunately, many corporate renewable energy buyers lack the teams or tools to carry out this kind of due diligence. But with the right mix of human expertise and purpose-built tools, companies can minimize risk and maximize the effectiveness of their PPAs.

This playbook outlines three key steps clean energy buyers should take to evaluate, monitor, and build an effective clean energy portfolio. You’ll learn how to:

  • Successfully monitor a project’s financial and operational performance
  • Forecast settlement payments to avoid costly surprises
  • Ensure that project locations and technology types align with your sustainability goals

Fill out the form below to access the full playbook.

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