PPA (Power Purchase Agreement)

A Power Purchase Agreement (PPA) is a long-term contract between a renewable energy producer and a buyer (corporate or utility) for the purchase of electricity at an agreed price. PPAs provide price certainty, additionality for Scope 2 market-based accounting, and support new renewable capacity. Types include on-site (behind-the-meter), off-site physical, and virtual/financial PPAs. PPAs are a cornerstone of RE100 commitments and corporate renewable energy procurement strategies.