Power Purchase Agreements
Power purchase agreements (PPAs) are typically long-term contracts between a power generator and a power offtaker. Power offtakers can include utilities, power marketers, commercial entities and residential consumers. PPAs can be for 100% of the output from a generator or a portion of the output. The per-kilo-watt hour price can be steady or include an escalator. In monopoly markets where state-owned utilities are the single buyers, policymakers may want to consider opportunities for allowing direct purchases of power via bilateral agreements between generators and corporate offtakers. PPAs can take multiple forms, including direct PPAs, virtual PPAs that are more of a financial agreement and aggregated PPAs that bring in multiple offtakers into a shared agreement.
Resources CESC
Publication
Corporate Sourcing of Renewables: Market and Industry Trends
Sources:
International Renewable Energy Agency (IRENA)
Publication
Corporate Renewable Power Purchase Agreements: Scaling up Globally
Sources:
World Business Council for Sustainable Development
Date:
26 October 2016
Publication
Distributed Solar Incentive Programs: Recent Experience and Best Practices for Design and Implementation
Sources:
National Renewable Energy Laboratory
Date:
1 December 2012
Publication
Financing Solar Photovoltaics (PV) at Government Sites with Power Purchase Agreements (PPAs) and Public Debt
Sources:
National Renewable Energy Laboratory
Date:
1 December 2011
Policy Data
Publication
Investment Decisions for Baseload Power Plants
Sources:
United States National Energy Technology Laboratory
ICF International
Date:
1 January 2010
Publication
Medium Size PV Plant
Sources:
Leonardo Energy
Date:
4 October 2016
Publication
State Clean Energy Financing Guidebook
Sources:
National Governors Association
Date:
1 January 2011
Publication
Tools and Websites
The REC Mechanism: Viability of Solar Projects in India
Sources:
Bridge to India
Date:
1 March 2013
Publication
Understanding Power Purchase Agreements
Sources:
Power Africa
African Legal Support Facility (ALSF)
Commercial Law Development Program (CLDP)
Date:
3 November 2014