Power Purchase Agreement

A Power Purchase Agreement (PPA) is an energy supply contract concluded between an electricity producer and a consumer (company, industrialist, energy supplier, energy distributor, etc.) who undertakes to purchase its energy over a defined period.
There are various structures for PPAs, but they can be classified into four main types: Onsite PPA, Physical PPA, Virtual PPA and Guarantees of Origin PPA.

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Choosing the right PPA structure depends on many variables, which should be aligned with the main motivation for companies to engage in PPA.
It is becoming increasingly important as a solution for companies and industrialists in all sectors who wish to secure their energy expenditure over the long term.