Wednesday 30 March 2022

Power Purchase Agreements

If you’re an independent generator who produces more energy than you use, the opportunity is there to sell your excess power back to the grid as a source of revenue. But first, you’ll need a supplier to do it.

This is where a Power Purchase Agreement (PPA) comes in. A PPA is a supply contract where you agree to sell your excess power to a third-party buyer, often at a fixed price and for a set period.

A good PPA will be easy to understand, reflect up-to-date market prices and set out clear payment terms. It should be fully transparent with no hidden costs.

There’s lots to know when it comes to choosing a PPA, so why not download Drax’s handy guide to find out more.