This utility's entry into complex Power Purchase Agreements (cPPA) exposed a critical gap: a structure around traditional functions (sales, trading, origination), and not cPPA ownership. CommodityFirst diagnosed the operating model and designed the governance structure to fix it.
Key results
End-to-end diagnostic
cPPA governance model design
Contract modularization framework
Contract management & CRM roadmap
Cross-functional ownership alignment
Who is this case suited for?
Utilities, Energy Companies, Trading Houses and larger IPPs entering the cPPA market
Medium to large organizations
Heads of Energy Markets, Chief Commercial Officers, Heads of Transformation, Trading Leads, Technology Leaders, Chief Risk Officers
Key challenges
The organization faced challenges across four dimensions:
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No end-to-end cPPA process; unclear roles and decision rights
No dedicated customer care function for cPPA customers
Lengthy, tedious approval process with no early risk or operations involvement
Cross-functional complexity treated as a coordination problem, not an operating model problem
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Heavy reliance on Excel and manual workflows for contract tracking
Inconsistent CRM usage across regions
No contract management system to support visibility of contract terms, amendments, or rights and obligations
No unified deal pipeline visible to operations and risk teams
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New Product Approval Process (NPAP) not designed for cPPA business model
No standardization of contracts or modularization of product elements
Complex, unclear approval workflow creating delays and frustration
Accountability for contract changes and amendments unclear
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Too few resources with holistic, end-to-end understanding of the cPPA lifecycle
Limited cPPA knowledge distribution across the organization
No dedicated capability for cPPA contract and relationship management
Knowledge concentration in original deal owners; contract context can get lost when people depart or move roles
A market opportunity with operational complexity
For years, utilities relied on standardized long-term offtake agreements or bilateral PPA contracts with relatively straightforward commercial terms. The cPPA market demanded longer tenors (10–25 years), bespoke terms, and settlement mechanics tied directly to renewable asset performance, curtailment, and market conditions.
This opened commercial opportunities but also introduced operational risk that the existing organization wasn't structured to manage.
The client recognized the strategic value of cPPA capabilities but faced a critical question:
Who's accountable and how should cPPA contracts be operated?
Experienced staff were compensating for the broken operating model daily, masking the underlying fragility. This created a hidden risk: as cPPA volume scaled, that manual heroism wouldn't scale with it.
Diagnosis before design
Rather than jumping to system selection, we conducted a structured diagnostic across the entire cPPA lifecycle.
What was found
The organization was lagging significantly across these core dimensions, revealing a systemic gap: the organization was structured around functional excellence (trading, origination, operations, back office, engineering, legal) while cPPA management required holistic, cross-functional ownership.
Competitors with strong cPPA capabilities had deliberately separated standard contract management from cPPA contract management, with dedicated resources and decision-making authority. The client's unified contract management approach was creating bottlenecks at every stage (from origination through operations to amendment and renewal).
What was assessed
After conducting interviews with 20+ internal stakeholders across trading, origination, asset management, legal, finance, and risk, we benchmarked the organization against peer utilities to understand how best-in-class organizations had addressed the same structural challenges.
The assessment covered process workflows and decision rights, systems capability for contract visibility and deal-pipeline transparency, governance structures for policy and accountability, and the staffing and organizational design enabling cross-functional execution.
Designing the Operating Mode
Based on the diagnostic, we designed a cPPA-specific operating model before recommending any systems.
The design proposal
The core concept: Create a dedicated cPPA Account Manager (CAM) role—a cross-functional, senior-level position responsible for owning the cPPA contract from pre-deal through operations and amendment.
| Design Element | What It Addresses |
|---|---|
| Distinguish Standard vs. cPPA Contract Mgmt | Different skill requirements; unified approach creates bottlenecks at every stage |
| Modularize Contracts & Products | Every cPPA is unique; standardize repeatable elements to reduce operational risk and complexity |
| Adjust the Approval Workflow | Current process lacks early risk and operations involvement; post-signature surprises common |
| Add Dedicated Customer Interface | No single point of contact; customer requests bounce between functions; slow response |
| Establish Unified cPPA Visibility | Deal pipeline fragmented across regions; operations and risk lack planning visibility |
| Formalize Contract Change Management | No clear ownership of amendments; unclear process creates delays and relationship risk |
Why systems come second
Notably, the design did not lead with system selection. Instead, it clarified what the systems needed to support.
Once operating model is defined, the system requirements become clear:
Contract Management System: Must support contract templates aligned to the product-element matrix; enable tracking of amendments and obligations; maintain version control and audit trails;
CRM System: Must log all customer interaction; provide unified customer view across regions; enable workflow for request handling and escalation;
Deal Pipeline Tool: Must visualize pre-deal, in-negotiation, and live deals; track approval status; flag upcoming renewal or renegotiation windows
Without the operating model design, system selection becomes a technical exercise divorced from how the organization actually needs to work. That's how utilities end up rebuilding the same blind spots on newer infrastructure.
Why this matters for other Utilities
The cPPA market is becoming mainstream. As more utilities enter it, they face the same structural question: How should the organization own a 20-year bespoke contract for a specific renewable asset?
Many are trying to apply existing PPA or trading processes. Those processes weren't designed for cPPA complexity and create operational friction.
Utilities achieve success if they:
Diagnose the operating model gap before jumping to systems
Create dedicated accountability rather than adding cPPA work to existing trading or origination functions
Design cross-functional approval workflows that catch risk and operational feasibility before signature
Standardize what can be standardized without losing the flexibility required by the deal
Build visibility of the deal pipeline and contract portfolio so risk and operations can plan ahead
These interventions cost less and are faster to implement than system replacement, and they determine whether technology investments actually solve the problem.
Positioning for Operating Model maturity
The diagnostic and design work positioned the client to move forward with confidence. The organization could now move beyond guesswork and hope it had concrete answers:
Clarity on operating model: Defined roles, decision rights, and accountability for cPPA contracts
A phased roadmap: Immediate staffing (CAMs), near-term process transformation (approval workflow), and medium-term systems implementation (contract management + CRM)
Cross-functional alignment: Stakeholders understood why the changes were needed and how they would reduce operational risk
Foundation for scale: A model that would support 2x or 5x growth in cPPA volume without proportional increases in coordination overhead
The organization was now ready to move from assessment to implementation – starting with operating model change, then systems that fit how they actually work.
Key Learnings
Operating model comes before systems. Without clarity on roles, accountability, and workflows, new systems recreate the same fragmentation.
Cross-functional ownership requires dedicated resources. Asking existing trading, origination, or operations teams to "own" cPPAs as a side-of-desk function doesn't work at scale.
Standardize selectively. Not every contract term should be modularized, but contract elements that repeat (payment conditions, curtailment clauses, force majeure language) should be pre-approved options.
Approval workflow design is risk management. Rushing to signature without operations and risk sign-off creates post-signature surprises that cost time and credibility.
Visibility enables planning. A unified deal pipeline and contract portfolio view allows operations and risk to anticipate needs, staff appropriately, and avoid firefighting.
CommodityFirst
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