A PPA (Power Purchase Agreement) is a contract between a renewable producer and a consumer whereby a long-term supply of electricity is agreed under pre-agreed conditions and at a pre-agreed price.
A PPA allows consumers to fix the price of electricity for a certain number of years, providing not only the certainty that electricity-intensive consumers need to operate their business but also helping to reduce pollutant emissions.
For the producer, a PPA means an assured output of its production at a competitive price over a long period of time.