Power Purchase Agreement (PPA) - Wind Energy - Revision history

Ranisha at 13:02, 29 August 2014

2014-08-29T13:02:52Z

Ranisha: /* Further Information */

2014-08-13T07:52:59Z

Further Information

Ranisha at 15:29, 12 August 2014

2014-08-12T15:29:33Z

Ranisha at 08:43, 12 August 2014

2014-08-12T08:43:23Z

Ranisha at 15:29, 11 August 2014

2014-08-11T15:29:28Z

Ranisha: /* Further Information */

2014-08-11T15:23:39Z

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Ranisha: /* Further Information */

2014-08-01T11:27:35Z

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Wiki Gardener: /* Further Information */

2014-06-05T15:05:54Z

Further Information

Wiki Gardener at 15:03, 5 June 2014

2014-06-05T15:03:05Z

Wiki Gardener at 15:02, 5 June 2014

2014-06-05T15:02:17Z

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 [[Portal:Wind|► Back to Wind Portal]]
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 PPAs usually last from 15-20 years and thus they should include all the variations in the tariff.
 = Further Information<br/> =
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 *[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Tanzania/Kenya Examples|Power Purchase Agreement for Isolated Mini-Grid – Based on Tanzania/Kenya Examples]]<br/>
 *[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Zimbabwean Practice|Power purchase Agreement for Isolated Mini Grid - Based on Zimbabwean Practice]]<br/>
-*[[:File:Sri_Lanka_Draft_Power_Purchase_Agreement_(PPA)_for_Wind_Power.pdf|Power Purchase Agreement for Srilanka]]<br/>
+*[[:File:Sri Lanka Draft Power Purchase Agreement (PPA) for Wind Power.pdf|Power Purchase Agreement for Srilanka]]<br/>
 *[http://www.westerncape.gov.za/other/2010/5/regional_regulatory_action_plan_final_report.pdf GTZ 2009: Development of Implementation Strategies for a Regional Regulatory Action Plan (RRAP) for the Western Cape. Power Purchase Agreement pp. 42]<br/>
 *Thumann,A., Eric,W.A.(2009)CRM Energy Project Financing:Resources and Strategies for Success. Available at: [http://regulationbodyofknowledge.org/wp-content/uploads/2013/10/Thumann_Energy_Project_Financing.pdf http://regulationbodyofknowledge.org/wp-content/uploads/2013/10/Thumann_Energy_Project_Financing.pdf]
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 = References =
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 <references />
 [[Category:Power_Purchase_Agreement_(PPA)]]

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 PPAs usually last from 15-20 years and thus they should include all the variations in the tariff.
 = Further Information<br/> =
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 *[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Tanzania/Kenya Examples|Power Purchase Agreement for Isolated Mini-Grid – Based on Tanzania/Kenya Examples]]<br/>
 *[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Zimbabwean Practice|Power purchase Agreement for Isolated Mini Grid - Based on Zimbabwean Practice]]<br/>
 *[http://www.westerncape.gov.za/other/2010/5/regional_regulatory_action_plan_final_report.pdf GTZ 2009: Development of Implementation Strategies for a Regional Regulatory Action Plan (RRAP) for the Western Cape. Power Purchase Agreement pp. 42]<br/>
 *Thumann,A., Eric,W.A.(2009)CRM Energy Project Financing:Resources and Strategies for Success. Available at: [http://regulationbodyofknowledge.org/wp-content/uploads/2013/10/Thumann_Energy_Project_Financing.pdf http://regulationbodyofknowledge.org/wp-content/uploads/2013/10/Thumann_Energy_Project_Financing.pdf]
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 <br/>
 = References =

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 = Overview =
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 <references />
 [[Category:Wind]]

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 = Overview =
-The '''Power Purchase Agreement (PPA)''' should be signed before construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels.
+The '''Power Purchase Agreement (PPA)''' should be signed before the construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. PPA agreement usually takes between purchaser (often a state-owned electricity utility)and a privately owned power producer.<ref> PPP in Infrastructure Resource CenterfckLRfor Contracts, Laws and Regulation,2014. Available at: http://ppp.worldbank.org/public-private-partnership/sector/energy/energy-power-agreements/power-purchase-agreements#key_features</ref> The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels.
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 == Pricing (Structure) ==
-== Term and Termination<br/> ==
+PPAs usually have a two- part contract, where the contract price reflects the cost of energy (variable charge) and the cost of the underlying technology being purchased (availability charge). The availability charge should cover the project company's fixed costs (including a return on equity for the project company) and the vaiable charge should cover the variable cost of energy generation (depends on the power supplied). For example, a hydro power plant and a gas-fired plant would have different two-part contracts. The hydro power plant would have a high fixed component and a lower variable component as compared to the gas-fired plant.<ref>Gardiner, M.& Montpelier, V., Best Practices Guide: Implementing Power Sector Reform.Available at:http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf</ref><ref> PPP in Infrastructure Resource CenterfckLRfor Contracts, Laws and Regulation,2014. Available at: http://ppp.worldbank.org/public-private-partnership/sector/energy/energy-power-agreements/power-purchase-agreements#key_features</ref>
-== Transmission<br/> ==
+PPAs usually last from 15-20 years and thus they should include all the variations in the tariff.
 = Further Information<br/> =
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 *[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Zimbabwean Practice|Power purchase Agreement for Isolated Mini Grid - Based on Zimbabwean Practice]]<br/>
 *[http://www.westerncape.gov.za/other/2010/5/regional_regulatory_action_plan_final_report.pdf GTZ 2009: Development of Implementation Strategies for a Regional Regulatory Action Plan (RRAP) for the Western Cape. Power Purchase Agreement pp. 42]<br/>
 <br/>
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 <references />
 [[Category:Power_Purchase_Agreement_(PPA)]]

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 = Overview =
-The '''Power Purchase Agreement (PPA)''' should be signed before construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels (cp. e.g.[http://gtz-windenergy.org.vn/index.php?cntnt01articleid=25&cntnt01dateformat=(%d/%m)&cntnt01detailtemplate=wind energy in vietnam&cntnt01returnid=53&mact=News,cntnt01,detail,0 Wind Energy Vietnam]).
+The '''Power Purchase Agreement (PPA)''' should be signed before construction starts. Under a PPA, off-takers agree to buy power from the project company for a set period at a certain rate. The PPA is obviously the most important agreement to be negotiated for the project as it dictates the future revenues of the project, It is crucial that the PPA does not penalize the project company if the power supply is affected by low wind levels.
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 == Examples<br/> ==
-*see: GTZ 2009: Development of Implementation Strategies for a Regional Regulatory Action Plan (RRAP) for the Western Cape. [http://www.gtz.de/de/dokumente/gtz2009-en-regional-regulatory-action-plan-western-cape.pdf http://www.gtz.de/de/dokumente/gtz2009-en-regional-regulatory-action-plan-western-cape.pdf], Power Purchase Agreement pp. 42<br/>
+*see: <br/>
 <br/>
+<br/>
 = Further Information<br/> =
 *[[Portal:Wind|Wind Portal on energypedia]]
-*[[Power_Purchase_Agreement_(PPA)_for_Medium_Scale_Wind_Power_Projects|Power Purchase Agreement (PPA) for Medium Scale Wind Power Projects]]<br/>
+*[[Power Purchase Agreement (PPA) for Medium Scale Wind Power Projects|Power Purchase Agreement (PPA) for Medium Scale Wind Power Projects]]<br/>
-*[[Power_Purchase_Agreement_(PPA)_for_Small_Scale_Rural_Power_Projects|Power Purchase Agreement (PPA) for Small Scale Rural Power Projects]]<br/>
+*[[Power Purchase Agreement (PPA) for Small Scale Rural Power Projects|Power Purchase Agreement (PPA) for Small Scale Rural Power Projects]]<br/>
-*[[Power_Purchase_Agreement_(PPA)_produced_for_Pakistan|Power Purchase Agreement (PPA) produced for Pakistan]]<br/>
+*[[Power Purchase Agreement (PPA) produced for Pakistan|Power Purchase Agreement (PPA) produced for Pakistan]]<br/>
-*[[Model_Power_Purchase_Agreement_(PPA)|Power Purchase Agreement for Kenyan Electricity Regulatory Board]]<br/>
+*[[Model Power Purchase Agreement (PPA)|Power Purchase Agreement for Kenyan Electricity Regulatory Board]]<br/>
-*[[Standardized_Power_Purchase_Agreement_(SPPA)_for_Grid-connected_Wind_Power_Project|Power Purchase Agreement for Grid-Connected Wind Power]]<br/>
+*[[Standardized Power Purchase Agreement (SPPA) for Grid-connected Wind Power Project|Power Purchase Agreement for Grid-Connected Wind Power]]<br/>
-*[[Standardized_Power_Purchase_Agreement_for_Purchase_of_Capacity_and_Associated_Electric_Energy_to_the_Isolated_Mini-Grid_–_Based_on_Tanzania/Kenya_Examples|Power Purchase Agreement for Isolated Mini-Grid – Based on Tanzania/Kenya Examples]]<br/>
+*[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Tanzania/Kenya Examples|Power Purchase Agreement for Isolated Mini-Grid – Based on Tanzania/Kenya Examples]]<br/>
-*[[Standardized_Power_Purchase_Agreement_for_Purchase_of_Capacity_and_Associated_Electric_Energy_to_the_Isolated_Mini-Grid_–_Based_on_Zimbabwean_Practice|Power purchase Agreement for Isolated Mini  Grid - Based on Zimbabwean Practice]]<br/>
+*[[Standardized Power Purchase Agreement for Purchase of Capacity and Associated Electric Energy to the Isolated Mini-Grid – Based on Zimbabwean Practice|Power purchase Agreement for Isolated Mini Grid - Based on Zimbabwean Practice]]<br/>
 <br/>
 = References =
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 <references />
 [[Category:Wind]]

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 <br/>
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 *[[Portal:Wind|Wind Portal on energypedia]]
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