Power Purchase Agreement
/ˈpaʊər ˈpɜːrtʃəs əˈɡriːmənt/
Definitions
- (n.) A contract between a power generator and a purchaser outlining terms for electricity sale and delivery, typically used in energy law and project finance.
The renewable energy project was financed based on the terms set forth in the power purchase agreement.
Forms
- power purchase agreement
- power purchase agreements
Related terms
See also
Commentary
The PPA defines pricing, delivery schedules, and risk allocation; precise drafting is critical to allocate regulatory and market risks effectively.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.