Wind Energy Keyword: "purchase"

Power Purchase Agreement (PPA)

Contract between two parties about the purchase of energy

A Power Purchase Agreement (PPA) is a contract between two parties about the purchase of energy: one party generates electricity and the other party purchases the electricity. Those contracts are often long-term to generate security.

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.


Source: Wikipedia


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