An insight into Power Purchase Agreements (PPAs)

A PPA is a contract between a generator and a third party which allows you to sell any excess power you don’t use.

Different suppliers will offer their own terms and conditions, however, there are a few core features that all good PPAs share and that generators that sell their energy need to be aware of.

For example, they should accurately reflect the current market price, have clear payment terms, and be easily understood by both parties.

PPAs can be complex, and the market can be difficult to navigate.

Drax have put together a guide to help you understand how PPAs work and which structure is the best for you.

Drax has worked with more than 2,300 independent renewable generators. They buy renewable electricity from these generators and provide it to their customers.

Through their 100% renewable electricity, they’re helping to decarbonise businesses of all sizes across the UK and providing a route to market for renewable generators.

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