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?

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

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