Power Purchase Agreements

A Power Purchase Agreement (PPA) is a legal contract between a renewable energy producer and a buyer, typically a utility or large company. It guarantees the buyer will purchase electricity generated by a specific project at a predetermined rate for a set period. PPAs help developers secure funding for their projects by ensuring consistent revenue, while buyers secure stable energy prices and environmentally friendly power. Essentially, it’s a long-term agreement that benefits both parties: the developer gets financial security, and the buyer gets access to renewable energy at predictable costs.