Power purchase agreement
A contract for the sale and purchase of electricity between a generator and an offtaker, buyer, trader, utility, municipality, or other contracting party.
Definition
A power purchase agreement should be reviewed with the generation project, licence or registration status, offtaker credit risk, price structure, term, metering, grid connection, wheeling, curtailment, force majeure, change-in-law, security, default, step-in rights, and regulatory approvals. The contract should match the actual electricity project and regulatory route.
Key takeaways
A contract for the sale and purchase of electricity between a generator and an offtaker, buyer, trader, utility, municipality, or other contracting party.
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Power purchase agreement
Energy project contract
Wheeling arrangement
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What does Power purchase agreement mean?
A contract for the sale and purchase of electricity between a generator and an offtaker, buyer, trader, utility, municipality, or other contracting party.
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