Electrify America, the EV charging company created by Volkswagen in the aftermath of its diesel emissions scandal, said on Tuesday that a new, 75 megawatt solar farm in Southern California is now up and running.
Electrify America isn’t operating this solar farm. Instead, the company struck a 15-year virtual power purchase agreement (VPPA) with renewable energy developer Terra-Gen. It’s the latest development in Electrify America’s efforts to link itself to renewable energy projects. The firms broke ground on the plant back in February.
Your typical VPPA involves a buyer, which pays a fixed price for whatever energy is generated, and a seller, which generates the energy and sells it via the grid for the buyer at market rates. The buyer assumes some risk, because the seller might wind up selling the energy below the fixed rate. Yet, the buyer could also see the upside if market prices trend above the fixed rate.
In other words: Electrify Amer …
