---
id: "prereq-corporate-energy-procurement"
type: "prereq"
source_timestamps: ["§ The Incumbent's Energy Playbook", "¶13"]
tags: ["finance", "energy-markets"]
related: ["action-contract-optionality", "claim-incumbents-need-energy-access"]
reason: "Essential for understanding how non-hyperscaler companies can hedge energy costs without physically owning power plants."
sources: ["futures"]
sourceVaultSlug: "hbr-seg-futures"
originDay: 2
articleStem: "hbr-nm-101-energy-strategy-ai"
sourceUrl: "https://hbr.org/2026/06/your-company-needs-an-energy-strategy-for-ais-next-phase"
sourceTitle: "Your Company Needs an Energy Strategy for AI’s Next Phase"
---
# Corporate Energy Procurement

## What you need to know
The source assumes the reader knows what **Power Purchase Agreements (PPAs)**, **Virtual Power Purchase Agreements (VPPAs)**, and **utility green tariffs** are.

## Why it's required
Essential for understanding how non-hyperscaler companies can hedge energy costs **without physically owning power plants** — the core mechanism of [[action-contract-optionality]] and the premise of [[claim-incumbents-need-energy-access]].