Power purchase agreement: Difference between revisions
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imported>Doug Williamson (Distinguish from Virtual PPA.) |
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. | |||
This type of contract is sometimes known as a ''direct'' PPA, to distinguish it from a Virtual PPA. | |||
== See also == | == See also == | ||
* [[Additionality]] | |||
* [[Asset finance]] | * [[Asset finance]] | ||
* [[Corporate finance]] | * [[Corporate finance]] | ||
| Line 23: | Line 32: | ||
* [[Project finance]] | * [[Project finance]] | ||
* [[Recourse]] | * [[Recourse]] | ||
* [[Renewables]] | |||
* [[REGO]] | * [[REGO]] | ||
* [[Sleeving]] | * [[Sleeving]] | ||
| Line 29: | Line 39: | ||
* [[Sustainability]] | * [[Sustainability]] | ||
* [[Transmission]] | * [[Transmission]] | ||
* [[Transmission and | * [[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
- Additionality
- Asset finance
- Corporate finance
- Distribution
- Existing asset
- Gas purchase agreement
- Green
- Infrastructure
- Integrated water and power plant
- New build
- New-to-earth asset
- Offtaker
- Plant
- Project finance
- Recourse
- Renewables
- REGO
- Sleeving
- Solar CSP
- Solar PV
- Sustainability
- Transmission
- Transmission and distribution
- Virtual PPA
External link
Introduction to Power Purchase Agreements - UK Crown Commercial Service
