A Power Purchase Agreement (PPA) is a contractual agreement between two parties, typically a seller and a buyer, where the seller agrees to provide energy to the buyer. The buyer could be an individual, a business, or even a government entity.
PPAs are commonly used in the renewable energy industry, where a solar or wind energy provider will sell energy to a buyer at a fixed price for a set period of time. This type of agreement allows the seller to secure a long-term revenue stream, while the buyer can lock in a predictable energy cost.
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