What is a PPA?

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A power purchase agreement (PPA) is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.

 

A PPA is the principal agreement that defines the revenue and credit quality of a generating project and is thus a key instrument of project finance. 

 

Studio Sallusto & Partners has reached an agreement with the largest Italian trader with a portfolio of over 1,000 managed power plants for a total of over 3 GWp power capacity.

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