PPAs (Power Purchase Agreement) are one of the worldwide energy trends.
Their purpose is securing a long-term supply of cheap energy, regardless of price increases.
When it comes to the RES market, the PPA is signed between the electricity producer and the consumer, i.e. the buyer. This form of contract gives an opportunity to come up with a more mutually beneficial arrangement than a standard auction system. It means stable energy costs and reliable product sales for many years.
PPAs specify the amount of energy supplied, prices for transactions, settlement methods, consequences of failure to comply with the agreement and the duration of cooperation.
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The flexibility to prepare provisions that are tailored to the needs of both parties and the lack of standardisation means that PPAs can vary widely.
Number of parties signing the contract:
Energy generation site: