Resource
What is a Power Purchase Agreement (PPA)?
A contract that allows an investor to buy a fixed amount of electricity from a producer over a period of years for a fixed price. If energy prices go up, the investor saves money; if energy prices drop, the producer profits. PPAs are used in renewables development because almost all the costs of solar, wind or hydro are upfront, so a PPA funds the building of the production infrastructure.
.png)