Microsoft is offering volume firming agreements (VFAs) that could reduce the risks associated with renewable energy power purchase agreements and encourage their take-up by smaller corporate buyers. That creates volume risk, which is the aggregate uncertainty of generation, and shape risk, which is the uncertainty of generation from one time period to another. The VFA transforms fluctuating prices from renewables' varying output into a stable and slightly higher price, which is guaranteed by a third-party insurer. In an interview at Microsoft's Redmond campus, CEO Satya Nadella said he was excited about the potential of VFAs.
Microsoft is offering volume firming agreements (VFAs) that could reduce the risks associated with renewable energy power purchase agreements and encourage their take-up by smaller corporate buyers. The VFA transforms fluctuating prices from renewables' varying output into a stable and slightly higher price, which is guaranteed by a third-party insurer. In an interview at Microsoft's Redmond campus, CEO Satya Nadella said he was excited about the potential of VFAs.