Power purchase agreement (PPA) | Practical Law

Power purchase agreement (PPA) | Practical Law

Power purchase agreement (PPA)

Power purchase agreement (PPA)

Practical Law UK Glossary 4-622-8759 (Approx. 3 pages)

Glossary

Power purchase agreement (PPA)

A contract to buy the electricity generated by a power station. The PPA may be the main source of revenue to a power project and may have a term of 15 years or more (depending on the technology and the duration of the financing). A PPA is a form of offtake contract, and is also known as a power offtake contract, power supply agreement or energy supply agreement. For more information, see: