Power Purchase Agreement
From Wikipedia, the free encyclopedia
A Power Purchase Agreement (PPA) is a legal contract between an electricity generator and a purchaser of energy or capacity (power or ancillary services). Such agreements play a key role in the financing of electricity generating assets. By clearly defining the output of a generating asset and its associated revenue streams, a PPA can be used by the owner of the asset to raise non-recourse financing[1]from a bank or other financing counterparty.[2][3]
Power purchase agreements are a popular financial vehicle to make renewable energy more accessible to residential and commercial properties. In 2006 10% of non-residential photovoltaic installations in the United States used a PPA, 50% in 2007, and expected to exceed 90% by 2009.[4][5]
[edit] See also
[edit] References
- ^ Non-Recourse Finance financial definition of Non-Recourse Finance. Non-Recourse Finance finance term by the Free Online Dictionary
- ^ Counterparty financial definition of Counterparty. Counterparty finance term by the Free Online Dictionary
- ^ Glossary
- ^ U.S. Retailers Save with Solar PV & Energy Efficiency
- ^ Solar Power Services: How PPAs are Changing the PV Value Chain
