Electricity suppliers offering a contract to purchase electricity for a period of six years or more must submit to the Commission a request for proof of necessity that: 1) The terms of the electricity purchase contract are the most reasonable and prudent way to cover these needs or 2) the price specified in the aerating contract is recovered in tranches from the electricity supplier`s customers. [16] Urban Grid, Quick Guide to Virtual Power Purchase Agreements, February 11, 2019, available at: www.urbangridsolar.com/guide-to-virtual-power-purchase-agreements/, available January 5, 2020. CPPA is not a new phenomenon, but extensive and frequent operations with CPPA have increased significantly. According to Bloomberg New Energy Finance (BNEF), the clean energy produced by CPPa increased by almost 20% in 2017 (from 2015). [1] In 2018, BNEF estimates that large companies have purchased 13.4 GW of renewable electricity from generators through CPPAs, more than double what it had in 2017. [2] Due to the growing demand from companies seeking to decarbonize, the CPPA market is expected to continue to grow as global groups shift to this market for renewable energy supply solutions. BNEF estimates that the signatories of the RE100 initiative alone will have to finance about 102 GW of new solar and wind projects worldwide to meet their 2030 commitments. [3] Need for a supplier to provide clearing services to flatten intermittent renewable energy – A company may be required to pay a substantial premium to a utility company to structure a takeover, to eliminate the company`s intermittent risk, to obtain a basic form shell in its delivery contract. PPVs allow flexibility in the number and location of loads delivered and are mainly used for the construction of facilities with the highest renewable resources, but where the business buyer cannot put pressure on the wholesale sale of electricity or avoid a slesving charge[14] and most often in liberalized electricity markets such as the United States, where this contractual model accounted for 82% of total U.S. sales in 2019.

[15] PPPs are a good option for large electricity consumers with a fragmented/distributed electrical charge, as they can support the development of new renewable energy sources[16] and be modulated if the company wishes to enter into contracts with more than one generator.