Power purchase agreement
Renewable Energy Procurement & Carbon Offsetting, Guidance for net zero carbon buildings, published by the UK Green Building Council (UKGBC) in March 2021, states: ‘A power purchase agreement is a contract entered into between a generator and a customer which allows the customer to have a direct purchasing relationship with a generator without needing a direct physical connection to the generation plant (such as under a private wire arrangement). It may take the form of a traditional PPA or be a type of contract for difference. A corporate PPA can bring electricity consumers and generators together irrespective of location.’
Zero carbon building, Performance standard, Version 2, Published by the Canada Green Building Council in March 2021, defines a power purchase agreement (PPA) as: ‘…a contract for green power and the associated environmental attributes that typically includes the purchase of a significant volume of electricity under a contract that lasts for at least fifteen years.’
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