Microsoft is developing 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 . And it can draw on a wider range of resources across a more diverse geography and the full range of market possibilities. The VFA transforms the prices from renewables ' varying output into a stable and slightly higher price , which is guaranteed by a third - party insurer . Through analysis of energy markets and price variations , this third party can then ensure delivery of electricity generated from renewables throughout the day at what would usually be a lower price than fossil fuel - generated electricity .
Microsoft is developing 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 the prices from renewables ' varying output into a stable and slightly higher price , which is guaranteed by a third - party insurer . Through analysis of energy markets and price variations , this third party can then ensure delivery of electricity generated from renewables throughout the day at what would usually be a lower price than fossil fuel - generated electricity .