A power purchase agreement is a contract between two parties, one who generates electricity for the purpose (the seller) and one who is looking to purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination. A PPA is the principal agreement that defines the revenue and credit quality of a generating project and is thus a key instrument of project finance. There are many forms of PPA in use today and they vary according to the needs of buyer, seller, and financing counterparties.
Other articles related to "power purchase agreement, power, purchase, power purchase agreements, agreement":
... energy commercialization Renewable portfolio standard wind farm wind power Wind power in the United States ...
... in return for a 25 year contract, or Power Purchase Agreement, to purchase electricity at a fixed price, normally set at or below current electric rates ... installed in the United States were installed using a power purchase agreement ... of the photovoltaics installed in the United States is in states that specifically address power purchase agreements ...
... On August 14, 2008, Pacific Gas and Electric announced an agreement to buy all the power from the power plant ...
Famous quotes containing the words agreement, power and/or purchase:
“No one can doubt, that the convention for the distinction of property, and for the stability of possession, is of all circumstances the most necessary to the establishment of human society, and that after the agreement for the fixing and observing of this rule, there remains little or nothing to be done towards settling a perfect harmony and concord.”
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