Power purchase agreement
Sustainability - renewables - electricity.
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.
- Asset finance
- Corporate finance
- Existing asset
- Gas purchase agreement
- Integrated water and power plant
- New build
- New-to-earth asset
- Project finance
- Solar CSP
- Solar PV
- Transmission and distribution
- Virtual PPA