Lessons from my first involvement in a corporate PPA

When setting out to finalise a corporate Power Purchase Agreement (PPA), the journey is filled with challenges, many of which only reveal themselves along the way. My first PPA deal was nothing short of an adventure, teaching me valuable lessons about balancing complexity and clarity while keeping the client’s needs at the forefront.

Understanding and managing risks

From the outset, understanding potential risks and addressing stakeholder concerns were pivotal. Corporate PPAs are long-term agreements, and the stakes are high for all parties involved. Buyers often worry about risks, such as whether thousands of solar panels could fail prematurely or whether market changes could render their deal less favourable.

Most of these risks can be mitigated through supplier guarantees, warranties, and meticulous planning.

At Amber, we prioritise providing stakeholders with clear, concise information to help them make informed decisions. This means navigating extensive legal jargon and detailed spreadsheets while presenting key points simply and effectively. Our goal was to demonstrate expertise while ensuring our client felt confident and secure in their choices.

Navigating the path between simplicity and detail

The crux of managing a corporate PPA is finding the balance between oversimplification and paralysis by analysis.

For the CFO we worked with, the focus was on understanding key risks, such as project delays, regulatory changes, and energy market volatility.Rather than overwhelming them with every possible scenario, we focused on what the PPA insulated the client against and what remained exposed. This approach not only built trust but also underscored our role as a partner committed to their success. Ultimately, the structure and clarity we provided ensured the deal’s progress was smooth and collaborative.

Adapting to the uniqueness of each PPA

No two renewable energy projects are alike. While templates and frameworks can provide a starting point, the real work lies in adapting to the specific needs and objectives of each party involved. PPAs often outlast the teams that initiate them, making it essential to establish robust frameworks while considering the long-term legacy of these projects.

The commitment of decision-makers to long-term ‘wagers’ – decisions that prioritise the enduring health of their business – was a critical advantage in our case. Success hinged on team engagement, trust-building, and collaborative problem-solving.

It’s a journey that requires patience and adaptability, with each detail shaping the broader outcome.

Reflections as a trusted advisor

What I took away from my first corporate PPA deal wasn’t just pride in the achievement but a deeper appreciation for the role of a trusted advisor. Guiding clients through uncertainty involves balancing persuasion with patience, distilling complexity without oversimplifying, and empowering them to make decisions they feel good about.

At Amber, we understand that every corporate PPA is its own adventure. By navigating challenges with expertise and empathy, we’re proud to help clients secure agreements that drive their renewable energy goals, while fostering confidence and trust throughout the process.