How corporate energy buyers can build healthier long-term energy relationships
This blog recaps a recent webinar hosted by Verse, where we explored the complexities of managing vPPAs through satirical analogies inspired by a popular Netflix dating show. We hope you enjoy it!
In a world where billion-dollar energy decisions hinge on long-term contracts, no one enters a virtual power purchase agreement (vPPA) lightly. Buyers conduct deep diligence, economic modeling, and stakeholder alignment before signing the dotted line. But between contract execution and project go-live — sometimes as long as two or three years later — markets can shift dramatically. In that time, forecasts become stale, and assumptions should change. And once the project is operational, the learning doesn’t stop — ongoing monitoring and data-driven insights are essential to managing long-term performance.
In Verse’s recent webinar, “Love Is Blind: vPPA Performance Tracking Shouldn’t Be,” Shehzad Wadalawala (VP of Strategy) and Sam Cotterall (Director of Client Enablement) used the unlikely lens of Netflix’s hit dating show to explore the emotional rollercoaster of vPPA management — and how to do it better.
💍 Falling in Love with a PPA: The Honeymoon Phase
Like contestants in Love is Blind, many buyers start their vPPA journey with a leap of faith. There’s excitement, optimism, and maybe even a press release celebrating the “engagement.” But as any couple will tell you, the real work begins after the vows.
That moment — when forecasts meet actuals — can bring surprises. High prices in 2023 may have looked great on paper. But as 2024 unfolded, some buyers saw their financial expectations crumble amid low market prices.
🚩 Red Flags Are Real (and Measurable)
Verse’s speakers highlighted common post commercial operation date (COD) issues that catch buyers off guard:
- Invoice errors
- Price volatility & basis risk
- Underperformance vs. generation forecast
- Mechanical availability issues
- Curtailment confusion
These red flags often go unnoticed until it’s too late — especially when data is scattered, late, or locked away in spreadsheets.
📊 Communication is Key: Real-Time Data, Not Just Chemistry
The secret to any lasting relationship? Communication. And in the world of vPPAs, data is the contract’s “love language”.
Verse emphasized that proactive monitoring and regular performance validation — through tools like Portfolio Insights — empower energy teams to:
- Automatically validate invoices before payment
- Forecast monthly, quarterly and annual spend with greater accuracy
- Catch anomalies (like incorrect timestamps or underperformance)
- Provide crisp answers to leadership on why things went off-budget
🛠 It’s Okay to Ask for Help
As the speakers reminded us, even the best vPPA “couples” hit rough patches. Whether it’s sudden market changes or internal pressure to explain results, the key is not to go it alone.
That’s where Verse’s platform comes in — acting like the “relationship coach” for your clean energy portfolio. From streamlined invoice validation to granular performance analytics, it’s designed to bring clarity and avoid chaos.
🎯 Lessons from Reality TV — and Real vPPAs
Key takeaways from the session:
- Expectations need to actively managed as market conditions change
- Track red flags and act on them early — they don’t go away on their own
- Communication is key – data silos erode trust but real-time data and teamwide access builds it
- You don’t have to do this alone – the Verse Aria platform is here to help!
Because love may be blind — but your energy strategy shouldn’t be.