For industrial companies, electricity price stability is a critical competitive factor. Yet not every business can or wants to restructure its physical supply chain. This is where the virtual PPA (vPPA) comes in — a structure we examine in detail in Chapter 5 of our new handbook.

A vPPA operates as a purely financial instrument, typically structured as a fixed-for-floating swap:

• No change to the existing supply relationship: Physical power procurement remains separate.
• Financial settlement mechanism: Difference payments between the agreed fixed PPA price and the market price help stabilise energy costs and provide greater budget certainty.
• Sustainability benefits: Guarantees of origin (GoOs) are often included, supporting the achievement of Scope 2 targets.

We advise corporate clients on negotiating these complex derivative structures in a legally robust and commercially practical manner.

Chapter 5 – Financial PPAs (RDB/Manz): Rautner/Winter: RDB Rechtsdatenbank

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