Power Purchase Agreement (PPA) - Wind Energy

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Overview

The Power Purchase Agreement (PPA) should be signed before construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels (cp. e.g.energy in vietnam&cntnt01returnid=53&mact=News,cntnt01,detail,0 Wind Energy Vietnam).


Aspects of Power Purchase Agreement (PPA)

Pricing (Structure)

Term and Termination

Transmission

Cost & Risk Allocation

Examples



Further Information



References