In one line
Long-term contract for the sale of electricity from a generator to a buyer at agreed pricing.
What it means
A Power Purchase Agreement (PPA) is a long-term contract (typically 15–25 years) for the sale of electricity from a generator to an offtaker. Fixed-price PPAs provide developers with revenue certainty enabling project finance. Indian SECI hybrid PPAs are 25-year fixed-price contracts; CPPA structures emerged for corporate offtakers.
Related terms
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