VPPA Settlement Cash Flow Calculator

Model the cash flow from a virtual power purchase agreement (VPPA). Provide the contract strike price, expected market price, and settled megawatt-hours to size the monthly swap payment. Optional fields capture basis adjustments and your retail supply rate so you can see the effective all-in energy cost after VPPA settlements.

Fixed price agreed in the VPPA for each megawatt-hour.
Average hub price you expect to receive from the ISO or RTO.
Energy volume settled each month under the contract.
Optional nodal or congestion adjustment applied to the strike.
Optional. Include your retail supply rate to see the effective all-in price after VPPA settlements.

Financial illustration only. Confirm actual settlement mechanics, losses, and credit provisions with your VPPA counterparty before hedging decisions.

Examples

  • $32.50 strike, $45.80 market, 18,500 MWh, −$1.25/MWh basis, $41.20 retail ⇒ Adjusted strike $31.25 per MWh • Market minus strike $14.55 per MWh • Monthly settlement to offtaker: $269,175.00 USD • Annualized settlement to offtaker: $3,230,100.00 USD • Effective all-in energy price using retail rate $41.20: $26.65 per MWh • Market breakeven (no cash exchange) occurs at $31.25 per MWh.
  • $38.00 strike, $33.40 market, 12,000 MWh, basis blank, retail blank ⇒ Adjusted strike $38.00 per MWh • Market minus strike −$4.60 per MWh • Monthly settlement to project: −$55,200.00 USD • Annualized settlement to project: −$662,400.00 USD • Effective all-in energy price using retail rate $38.00: $42.60 per MWh • Market breakeven (no cash exchange) occurs at $38.00 per MWh.

FAQ

What volume should I enter?

Use the expected metered generation delivered to the hub for the billing month. If the VPPA settles on a fixed volume block, enter that contracted quantity instead.

How do negative market prices behave?

Negative market prices reduce the market minus strike figure and can flip settlement direction. The calculator handles negative inputs so you can stress-test curtailment periods.

Can I model multiple market scenarios?

Yes. Run the calculator for each forward strip or scenario and compare the monthly settlement outputs to build a sensitivity table.

Does this include REC revenue?

No. Renewable energy credit monetization is separate—add REC cash flows to the settlement result outside the calculator.

Additional Information

  • Positive cash flow means the offtaker receives a payment from the project because market prices exceeded the adjusted strike.
  • Basis input shifts the strike up or down to capture nodal congestion, hub-to-node differences, or contract-defined adders.
  • Effective hedge price subtracts (or adds) the settlement value per MWh from your retail rate to show the net cost of power after the VPPA cash settlement.

Related calculators