Power Purchase Agreements (PPAs)

A Power Purchase Agreement (PPA) is a contractual arrangement between a energy producer, typically a renewable project like a solar or wind farm, and a buyer, such as a utility or large organization. It specifies the terms for selling the electricity generated over a set period at agreed-upon rates. PPAs help project developers secure financing and provide buyers with stable energy costs. Essentially, it’s a long-term deal that ensures the producer can sell their power, while the buyer guarantees a reliable source of clean energy at predictable prices.