Power Purchase Agreement
This template is a power purchase agreement (PPA) used by utilities that defines the relationship between a Special Purpose Vehicle (SPV), as seller, and the party that buys the electricity that the power plant generates (Buyer). This template contains practical guidance, drafting notes, and alternate and optional clauses. This PPA mitigates market risk by providing guaranteed cash flow through the pre-negotiated sale of a power plant's electrical output. This PPA for utilities outlines all of the terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, project finance, payment terms, and termination. This PPA should be made consistent with the other documents which comprise the project documents, including the Engineering, Procurement and Construction Agreement, the Operations and Maintenance Agreement, the Fuel Supply Agreement, and the Interconnection ...