Power purchase agreement: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
(Expand definition with potential benefits - source - edie - https://www.edie.net/definition/power-purchase-agreement-ppa/?utm_campaign=edie%20daily%20news%20alert&utm_source=AdestraCampaign&utm_medium=Email&utm+content=Read%20more)
 
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A contract between an electricity generator and a buyer for the sale of green electricity between the two parties.
A contract between an electricity generator and a buyer for the sale of green electricity between the two parties.
Potential benefits of power purchase agreements include:
*Providing a fixed price for energy over the period of the contract;
*Managing exposures to energy price volatility; and
*Enabling more predictable cost planning.




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* [[Project finance]]
* [[Project finance]]
* [[Recourse]]
* [[Recourse]]
* [[Renewables]]
* [[REGO]]
* [[REGO]]
* [[Sleeving]]
* [[Sleeving]]
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* [[Sustainability]]
* [[Sustainability]]
* [[Transmission]]
* [[Transmission]]
* [[Transmission and Distribution]]
* [[Transmission and distribution]]
* [[Virtual PPA]]
* [[Virtual PPA]]
==External link==
[https://assets.crowncommercial.gov.uk/wp-content/uploads/Power-Purchase-Agreements-PPA-An-Introduction-to-PPAs.pdf Introduction to Power Purchase Agreements - UK Crown Commercial Service]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 15:34, 13 August 2022

Sustainability - renewables - electricity.

(PPA).

A contract between an electricity generator and a buyer for the sale of green electricity between the two parties.


Potential benefits of power purchase agreements include:

  • Providing a fixed price for energy over the period of the contract;
  • Managing exposures to energy price volatility; and
  • Enabling more predictable cost planning.


This type of contract is sometimes known as a direct PPA, to distinguish it from a Virtual PPA.


See also


External link

Introduction to Power Purchase Agreements - UK Crown Commercial Service