What Is A Power Purchase Agreement

In some jurisdictions, including the United Kingdom, these provisions will also include the obligation to provide or acquire certain metering and regulatory activities that can only be carried out by approved electricity suppliers. Therefore, the client company in these countries must enter into a consecutive agreement with an approved supplier under which the approved supplier undertakes to assume these obligations. The above-mentioned ECA should be distinguished from power purchase agreements in a deregulated electricity market, where agreements are generally power purchase agreements with a private producer where the power plant already exists or where the plant is built on the initiative of the private producer. .