What is a Power Purchase Agreement (PPA)? Sustainability Simplified Glossary

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A Power Purchase Agreement (PPA) is a contract between two parties, commonly a power producer (such as a renewable energy developer or generator) and a power purchaser (often a utility company, corporation, or a large energy consumer). This agreement outlines the terms and conditions for the sale and purchase of electricity. 

Key elements of a Power Purchase Agreement include: 

PPAs have been crucial in the development and expansion of renewable energy projects. They provide a guaranteed revenue stream for renewable energy producers, making their projects more financially viable. PPAs provide large corporations long-term price stability and the chance to meet sustainability goals through renewable energy sourcing.

These agreements play a pivotal role in the energy industry, particularly in the transition towards cleaner and more sustainable sources of electricity generation, by facilitating the development and investment in renewable energy projects. 

Learn more about Power Purchase Agreements (PPAs) ->

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