|Power Purchase Agreement (PPA)|
|European Union Electricity Market Glossary|
In a Power Purchase Agreement (PPA) a buyer generally agrees to take off power from a producer at conditions agreed in advance.
A specific variant of a standard PPA is sleeving/third party netting, i.e. a PPA between a licensed supplier and a producer, which links the generation directly to the customer (it is used by non-residential producers or prosumers wanting to sell electricity directly to a final customer).
European energy market regulators (Regulatory Aspects of Self-Consumption and Energy Communities, CEER Report, Customers and Retail Markets and Distribution Systems Working Groups, 25 June 2019, Ref: C18-CRM9_DS7-05-0, p. 17) observe that in this instance the role of a licensed supplier is to emulate a peer-to-peer trade sharing arrangement by taking the electricity in question into its balancing perimeter and delivering it to the final customer. In that respect, the involved supplier manages the imbalance risk of the exchange.
25 June 2019
18 June 2019
Corporate Renewable Power Purchase Agreements: Scaling up globally, WBCSD,
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|Last Updated on Wednesday, 31 July 2019 10:19|