Power Purchase Agreement Drafting Checklist


Summary

When obtaining development, construction, or other financing for an electric generating facility, borrowers desiring to use typical non-recourse project financing, should note that lenders will pay particular attention to the project's power purchase agreement (''PPA'') during the lenders' diligence period. The PPA governs the sale of the electricity produced by the facility, and typically functions as the project's main source of revenue.