5 Things Energy Buyers Should Know About PPAs Right Now

The following insights are drawn from Trio’s latest Risky Business discussion on how organizations are integrating PPAs into broader energy risk strategies. 

Energy markets have changed and so has the conversation around risk. 

For years, many organizations approached energy primarily as a procurement exercise: secure competitive pricing, manage contracts, and revisit strategy periodically. 

But over the past five years, volatility, geopolitical disruptions, and changing market dynamics have forced many buyers to reassess how they think about energy exposure. As discussed in Trio’s latest Risky Business conversation, organizations are increasingly evaluating not only cost – but also certainty, security, and long-term exposure.  

One tool becoming a larger part of that discussion is the Power Purchase Agreement (PPA). 

In the discussion, Trio’s Sanjin Lucic, Director of Risk Management and Trading, Jordan Lafford, Senior Energy Risk Manager; Corina Melchor, Associate Director, Sustainability & Clean Energy; and Kristi Ghosh, Manager, Sustainability & Clean Energy, explored how PPAs are evolving – and where they fit within broader energy strategies. 

Here are five key takeaways from the conversation. 

1. PPAs Are Increasingly Being Evaluated Beyond Sustainability Goals 

As Corina Melchor explained during the discussion, many early corporate buyers pursued PPAs primarily to support decarbonization and renewable energy targets.  

But over time, particularly amid sustained market volatility, organizations have increasingly begun evaluating PPAs through an additional lens:  long-term cost management and risk mitigation. 

Throughout the conversation, the team discussed how PPAs can help provide: 

• longer-term price visibility  
• reduced exposure to wholesale market volatility  
• additional supply certainty  
• access to dedicated renewable generation capacity  

Jordan Lafford, Senior Energy Risk Manager, noted that volatility has increasingly become part of normal market conditions rather than a short-term disruption, changing how many organizations think about procurement decisions.  

2. PPAs Are Not a “Silver Bullet” 

One of the clearest themes repeated throughout the discussion was that PPAs are not a one-size-fits-all solution. 

Corina specifically emphasized that PPAs should be viewed as one tool within a broader strategy – 

not the strategy itself.  

The conversation highlighted several considerations buyers need to evaluate carefully, including: 

• volume and shaping risk  
• counterparty risk  
• project development and permitting risk  
• alignment between generation and consumption profiles  
• long-term contractual flexibility  

The group also discussed how different structures – including physical retail-supplied PPAs, onsite solar arrangements, and virtual PPAs – may fit different organizational priorities and operational realities.  

As the discussion made clear, structure and implementation matter as much as the decision to pursue a PPA itself. 

3. Many Buyers Are Reconsidering the Risk of “Waiting” 

A recurring topic during the conversation was timing. 

According to Jordan and Corina, many organizations continue asking whether it makes sense to wait for markets to “stabilize” before entering into longer-term agreements.  

But several participants noted that buyers are increasingly focused less on finding the perfect market entry point and more on understanding their long-term exposure to continued volatility. 

As Jordan explained: “Energy used to be something you purchased… It’s effectively now something that you need to manage.”  

Corina also noted that not taking action is still a position – and one that organizations are actively evaluating as part of broader risk discussions.  

4. Buyers Are Increasingly Taking Portfolio Approaches 

Another key theme from the discussion was diversification. 

The group discussed how procurement approaches have evolved significantly over the last several years, with buyers increasingly evaluating combinations of: 

• PPAs  
• shorter-term hedging products  
• onsite solar  
• multiple renewable technologies  
• hybridized portfolios  

Also highlighted was the growing interest in combining different technologies and structures, particularly as more sophisticated products become available in the market.  

The discussion also emphasized the importance of understanding how renewable generation profiles align with organizational consumption patterns – particularly in markets with heavy solar penetration or evolving pricing dynamics.  

Overall, the conversation reflected how many organizations are approaching procurement decisions with increasing focus on balancing flexibility, certainty, and exposure over time. 

5. The Role of Energy Procurement Is Expanding 

A broader takeaway from the conversation was that energy procurement itself is evolving. 

Several participants discussed how organizations are increasingly balancing multiple priorities simultaneously, including: 

• cost management  
• supply certainty  
• market exposure  
• sustainability objectives  
• long-term planning considerations  

Throughout the discussion, the team repeatedly returned to the idea that PPAs are becoming part of wider conversations around managing exposure in uncertain markets – not simply standalone renewable energy purchases.  

As Corina summarized: “PPAs are not perfect instruments. They don’t erase risk, but they do make it manageable.”  

Considering How PPAs Fit into Your Strategy? 

As organizations reassess how they manage energy cost, exposure, and long-term procurement planning, many are evaluating where PPAs and other structured solutions may fit within a broader risk management approach. 

Trio works with organizations across sectors to assess: 

• exposure to market volatility  
• procurement and hedging strategies  
• onsite and offsite renewable opportunities  
• portfolio diversification approaches  
• long-term energy risk considerations  

Whether organizations are actively exploring PPAs or simply evaluating their options, these conversations are increasingly becoming part of broader strategic planning discussions. 

The Bottom Line 

The conversation made clear that organizations are increasingly reassessing how PPAs fit within broader energy strategies. 

While PPAs may not be the right fit for every buyer or every situation, they are becoming an increasingly important consideration in discussions around long-term exposure, market volatility, and procurement strategy. 

And as market conditions continue evolving, organizations are placing greater emphasis not only on price — but on how they structure and manage risk over time. 

Listen/Watch the Full Discussion 

To hear the complete conversation with Trio’s Sanjin Lucic, Jordan Lafford, Corina Melchor, and Kristi Ghosh, listen to the latest episode of Risky Business.

Connect With Trio 

If your organization is evaluating how PPAs, procurement strategies, or renewable energy solutions fit into broader energy risk management discussions, Trio’s team is available to help. 

👉 Schedule an Energy Strategy Session to discuss: 

• market exposure and volatility  
• procurement and hedging considerations  
• renewable energy and PPA structures  
• portfolio and risk management approaches