What is a Power Purchase Agreement (PPA) Market?

A Power Purchase Agreement (PPA) Market is a legal contract between an electricity generator and a purchaser (often a utility or corporate entity), outlining the terms and conditions for the sale and purchase of electricity over a specified period. The PPA establishes the price, duration, delivery terms, and other relevant details of the power transaction.

How does a Power Purchase Agreement market work?

In a PPA, the generator agrees to produce a certain amount of electricity at an agreed-upon price per unit (typically kilowatt-hour or megawatt-hour) for a specific period, usually long-term, ranging from several years to several decades. The purchaser commits to buying this electricity at the agreed price, providing revenue certainty for the generator and a stable power supply for the purchaser.

Are Power Purchase Agreements market legally binding?

Yes, Power Purchase Agreements are legally binding contracts that define the rights and obligations of the involved parties. They are enforceable in a court of law and are designed to protect the interests of both the generator and the purchaser throughout the contract term.

What is the Size of Power Purchase Agreement Market?

Power Purchase Agreement Market size is expected to be worth around USD 35.3 billion by 2033 , from USD 28.3 billion in 2023

Power Purchase Agreement Market Size

Global Power Purchase Agreement Market By Type (Physical Delivery PPA, Virtual PPA, Portfolio PPA, Block Delivery PPA, and Others), By Location (On-site and Off-site), By Category (Corporate, Government, and Others), By Deal Type (Wholesale, Retail, and Others), By Capacity (Up to 20 MW, 20-50 MW, 50-100 MW, and Above 100 MW), By Application, By End-Use, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

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