News & Resources


Virtual PPAs and Sleeved PPA Transactions: a Primer

November 16, 2023 – In recent months, Centennial's corporate and industrial customers have increasingly asked for Sleeved PPAs and, in some cases, Virtual PPAs.  

Sleeved PPA Structure

Sleeved PPAs often involve a direct Power Purchase Agreement (PPA) between the corporate offtaker and the solar project company.  The offtaker usually enters into associated arrangements, which are either managed by the offtaker itself or via a utility or other load-serving entity, to enable the output purchased to be used for the benefit of the offtaker's off-site facility load. 

Virtual PPA Structure

Whereas, Virtual PPAs are a financial derivative under which the parties agree a strike price, with payment flows being determined by comparing that strike price against a market reference price. They do not involve the physical delivery of output to the buyer or a utility agent of the buyer. 

Centennial Inaugurates Solar Project at the Holcim Ready Mix Concrete Plant in Washington, DC

September 14, 2023 – Earlier this month, Holcim - a Fortune 500 company and global leader in cement and aggregate production - inaugurated a solar project at its Fort Totten ready mix concrete plant in northeast Washington, DC. 

Renewable Energy Certificates: a patchwork approach to deploying clean technologies

August 14, 2023 – State-mandated Renewable Energy Certificates (RECs) are a key financial incentive for solar projects in the U.S.  However, within each state program, the annual value and term of RECs, as well as the number of available RECs, inhibits the growth of the renewable sector.  These limitations make project planning a challenge for developers, investors and utility and state public service commission officials responsible for generation and transmission forecasting and design. 

Mitigating Merchant Risk for Power Projects: Hedging Contracts

May 12, 2023 – A discussion of the hedging arrangements power project owners use to mitigate merchant risk and make their projects financeable. This note also discusses why these arrangements are necessary and the benefits and drawbacks of these arrangements.

Traditionally, power projects that are built in the US are backed by long term power purchase agreements (PPAs).