Power Purchase Agreement (PPA) - Wind Energy

Overview

The Power Purchase Agreement (PPA) should be signed before construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels (cp. e.g.energy in vietnam&cntnt01returnid=53&mact=News,cntnt01,detail,0 Wind Energy Vietnam).

Aspects of Power Purchase Agreement (PPA)

Examples

• see: GTZ 2009: Development of Implementation Strategies for a Regional Regulatory Action Plan (RRAP) for the Western Cape. http://www.gtz.de/de/dokumente/gtz2009-en-regional-regulatory-action-plan-western-cape.pdf, Power Purchase Agreement pp. 42
  

Further Information

• Wind Portal on energypedia
• Power Purchase Agreement (PPA) for Medium Scale Wind Power Projects
  
• Power Purchase Agreement (PPA) for Small Scale Rural Power Projects
  
• Power Purchase Agreement (PPA) produced for Pakistan
  
• Power Purchase Agreement for Kenyan Electricity Regulatory Board
  
• Power Purchase Agreement for Grid-Connected Wind Power
  
• Power Purchase Agreement for Isolated Mini-Grid – Based on Tanzania/Kenya Examples
  
• Power purchase Agreement for Isolated Mini Grid - Based on Zimbabwean Practice