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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

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Publication

Corporate Sourcing of Renewables: Market and Industry Trends

This report highlights the latest trends in corporate sourcing of renewable electricity and provides recommendations to more fully exploit its…

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International Renewable Energy Agency (IRENA)

Publication

Corporate Renewable Power Purchase Agreements: Scaling up Globally

A business case has been made for corporations to procure renewable energy, and Fortune 500 companies and others have set…

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World Business Council for Sustainable Development

Date:

26 October 2016

Publication

Distributed Solar Incentive Programs: Recent Experience and Best Practices for Design and Implementation

This report examines best practices for designing and implementing solar incentive programs by reviewing these programs from entities across the…

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National Renewable Energy Laboratory

Date:

1 December 2012

Publication

Financing Solar Photovoltaics (PV) at Government Sites with Power Purchase Agreements (PPAs) and Public Debt

This fact sheet describes a bond-power purchase agreement (PPA) hybrid financing model for solar photovoltaics (PV). The fact sheet also…

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National Renewable Energy Laboratory

Date:

1 December 2011

Policy Data

Publication

Investment Decisions for Baseload Power Plants

This six-volume report details the key drivers that affect private entities in the United States as they consider investing in…

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United States National Energy Technology Laboratory

ICF International

Date:

1 January 2010

Publication

Medium Size PV Plant

This application note provides an overview of relevant characteristics and considerations regarding commercial and tertiary sector photovoltaic (PV) power plants…

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Leonardo Energy

Date:

4 October 2016

Publication

State Clean Energy Financing Guidebook

This report helps states consider innovative clean energy program financing options that maximize state resources. The guidebook helps states consider three important…

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National Governors Association

Date:

1 January 2011

Publication

Tools and Websites

The REC Mechanism: Viability of Solar Projects in India

This report reviews India’s solar renewable energy certificate (REC) market by identifying the events that lead to its creation and…

Sources:

Bridge to India

Date:

1 March 2013

Publication

Understanding Power Purchase Agreements

This handbook is intended to provide governments, utilities, investors and other interested stakeholders with a guide to understand (1) the…

Sources:

Power Africa

African Legal Support Facility (ALSF)

Commercial Law Development Program (CLDP)

Date:

3 November 2014