Wat Is Een Power Purchase Agreement

The benefits of a power purchase agreement include long-term price certainty, ways to finance investments in new power generation capacity, or reduced risks associated with electricity sales and purchases. Although the parties can agree and sign a 10-year PA contract, the asset in question can last up to 30 years. Power purchase agreements provide assurance that the project will generate a return on their capital investment upon completion by reducing cash flow uncertainty. Data center owners Amazon, Google, and Microsoft have used PPAs to offset emissions and energy consumption from cloud computing. Some manufacturers with high CO₂ emissions and energy consumption, such as Anheuser-Busch InBev, have also shown interest in ESAs. .