Glossary

Power Purchase Agreement (PPA)

By December 3, 2021No Comments

A structured – typically long-term – offtake arrangement between a power-generator SPV and a power Offtaker. The offtaker may be a public or private sector entity. A wide range of such instruments exists, but the PPA incorporating a Capacity Payment tends to be the offtake structure of choice in project-financed power transactions in the emerging markets.