(PPA) A type of contract that allows a consumer, typically a large industrial or commercial entity, to form an agreement with a specific energy generating unit. The contract itself specifies the commercial terms including delivery, price, payment, etc. In many markets, these contracts secure a long-term stream of revenue for an energy project. In order for the consumers to say they are buying the electricity of the specific generator, attributes must be contractually transferred to the consumer with the electricity.
PURCHASE POWER AGREEMENT
