Electric companies and corporate buyers are navigating an increasingly complex energy landscape by using a diverse set of mechanisms to meet operational needs and other corporate goals. This report provides a foundational reference on how electricity is sourced, reviewing a broad range of power procurement pathways—including power purchase agreements (PPAs), regulated bilateral contracts, retail supply agreements, utility clean energy tariffs, self-generation, and wholesale market purchases.
The report outlines key contract structures, market dynamics, and procurement considerations—including how different approaches may affect exposure to commercial and operational risks—while also examining trends in selected geographies outside the U.S. related to PPAs and wholesale markets. By clarifying the roles and trade-offs of these approaches, the report supports more informed decision-making and can help inform future work on topics such as 24/7 carbon-free energy, hydrogen-linked PPAs, and co-located generation and load.
Authors Todd Gorgian