Virtual PPAs (VPPAs) or Synthetic Power Purchase Agreements (also: SPPAs) are financial  contracts of difference.  It is not about a physical delivery of energy. They need a liquid electricity market, either through ISO or RTO. Ideally, this would suit customers from multiple sites, who are not tied to a particular energy market. Considered as more flexible, VPPAs are akin to a financial hedge and have no dispatch costs and no limits on load points.   Without direct actual conveyance between the contracting parties (like an on-site PPA), and with no immediate adjusting sheet interface between them (like an off-site PPA), VPPAs are also considered cost-effective.  Virtual PPAs continue to dominate the U.S. market, with  12GW  worth of deals.