Summary

The Power Purchase Agreement (PPA) is the central contractual instrument in the generation, distribution, and transmission of electricity globally. As both nations with liberalized energy markets and nations in the process of liberalizing energy markets shift towards energy mixes to include renewables, traditional PPA templates must evolve.  This evolution is multi-pronged: from a contractual perspective, one must account for terms, conditions, and challenges that are unique to renewable PPAs (Part II); from a regulatory perspective, countries and their regulators in both liberal and liberalized energy markets can promote energy-transition goals through regulations regarding utility PPAs and direct PPAs (Part III); and from a practical perspective, different non-energy focused, but nevertheless energy-intensive, industries can work to “carbon proof” operations by implementing these contractual terms in a regulatory environment that moves countries and industries towards net-zero (Part IV). In this paper, the authors include a combination of case studies from developed and emerging economies.

This paper will be part of the OGEL Special Issue on "Electricity Market Design". More information here www.ogel.org/news.asp?key=775