PPA 101

Whether you are new to the world of power project development, or just need a refresher, this presentation will provide an introduction to power purchase agreements (“PPAs”), which are a key source of revenue for electric generation owners and a critical document in many project financings.  We will discuss the rationale for entering into such agreements, the typical parties to a PPA, common contract provisions in PPAs, and frequent points of contention between sellers and buyers.  We also will detail differences between thermal PPAs and renewable PPAs and explain the structure of “virtual” PPAs.  Participants will come away with a more thorough understanding of these arrangements and be ready to play a more active role in their next negotiation!