New build

Sustainability - renewables - electricity - power purchase agreements.

In this context, a new build asset is an asset for green electricity generation that has not yet been built.

Contrasted with an Existing asset.

In simple terms, striking a power purchase agreement (PPA) in relation to a new build asset is likely to:

• Be more expensive, because set up and installation costs will not yet have been covered, but
• Considered more "green", because new green capacity is added to the power network.
• Be longer term than an existing asset PPA, and
• Provide greater scope for a buyer to secure prices for a correspondingly longer time period.

In this context, new build assets are sometimes known as New-to-earth assets.

See also

• Additionality
• Asset finance
• Corporate finance
• Distribution
• Existing asset
• Gas purchase agreement
• Green
• Infrastructure
• Integrated water and power plant
• Offtaker
• Plant
• Power purchase agreement
• Project finance
• Recourse
• REGO
• Renewables
• Sleeving
• Solar CSP
• Solar PV
• Sustainability
• Transmission
• Transmission and distribution
• Virtual PPA

External link

Introduction to Power Purchase Agreements - UK Crown Commercial Service