Q&As

What is a power purchase agreement?

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Published on LexisPSL on 13/12/2013

The following Energy Q&A provides comprehensive and up to date legal information covering:

  • What is a power purchase agreement?

What is a power purchase agreement?

A power purchase agreement (PPA) is a contract between an electricity generator (generator) and the party who is purchasing the power (offtaker) which incorporates the commercial terms for the sale and purchase of electricity for a project.

The PPA provides a route to market for the electricity generated by the generator and in the case of renewable energy generating stations, the associated green benefits, which the generator receives for generating electricity from

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