Power purchase agreement

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