Microsoft Pioneers New Way To Derisk Renewable Energy Investments

In a corporate blog post on October 16, Microsoft announced a new tool to help take the risk out of investments in renewable energy, a move it hopes will help drive the renewable energy revolution forward. Intended for large corporate and industrial customers, it is called a Volume Firming Agreement and it can become part of any new or existing Power Purchase Agreement. While there is no cost of fuel for renewables making long-term price predictions more reliable for renewables than for other forms of power generation there are short-term concerns with renewables that affect the spot market value of the electricity generated. Too much electricity means it has to be sold at below-market rates. Too little and other sources have to be tapped to meet demand at above market rates.