Document
Power Purchase Agreement (PPA)
Project Document
A Power Purchase Agreement is the principal revenue contract under which a generator sells and an offtaker purchases electrical energy, capacity or both from an identified facility. It links project development and commissioning to grid delivery, operational coordination, metering, tariff calculation, payment, risk events, default and termination. Its bankability depends not only on price but on the coherence of availability, dispatch, curtailment, deemed-output, credit-support and termination arrangements.
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