Definitions for power purchase agreement
power pur·chase agree·ment

WikipediaRate this definition:0.0 / 0 votes

1. Power purchase agreement

   A power purchase agreement (PPA), or electricity power agreement, is a long-term contract between an electricity generator and a customer, usually a utility, government or company. PPAs may last anywhere between 5 and 20 years, during which time the power purchaser buys energy at a pre-negotiated price. Such agreements play a key role in the financing of independently owned (i.e. not owned by a utility) electricity generators, especially producers of renewable energy like solar farms or wind farms. PPAs contracts can either be for a pre-defined amount of electricity or for a pre-defined portion of whatever quantity of electricity the seller generates. In either case, the price can be a fixed amount per kilowatt-hour or fluctuating market rates, depending on the specific terms of the contract.In the case of distributed generation (where the generator is located on a building site and energy is sold to the building occupant), commercial PPAs have evolved as a variant that enables businesses, schools, and governments to purchase electricity directly from the generator rather than from the utility. This approach facilitates the financing of distributed generation assets such as photovoltaic, micro-turbines, reciprocating engines, and fuel cells. More than 137 firms in 32 countries reported the signing of power purchase agreements in 2021.

WikidataRate this definition:0.0 / 0 votes

1. Power purchase agreement

   A power purchase agreement is a contract between two parties, one who generates electricity for the purpose and one who is looking to purchase electricity. 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. In the U.S., PPAs are typically subject to regulation by the Federal Energy Regulatory Commission. FERC determines which facilities applicable for PPAs under the Energy Policy Act of 2005. PPAs facilitate the financing of distributed generation assets such as photovoltaic, microturbines, reciprocating engines, and fuel cells.

How to pronounce power purchase agreement?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say power purchase agreement in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of power purchase agreement in Chaldean Numerology is: 5

2. Pythagorean Numerology

   The numerical value of power purchase agreement in Pythagorean Numerology is: 4

Examples of power purchase agreement in a Sentence

1. Zafar Yab Khan:

   It's likely to be finalised shortly, the power purchase agreement would include a transmission line.

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Power_Purchase_Agreement
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=power purchase agreement