Power purchasing agreement (PPA) is a long-term power purchase contract between two parties: 1. Power supplier (from renewable energy systems such as solar power) and 2. Clients who aim to optimize energy costs and use clean electricity.
Through the PPA contract, the project developer will perform all the work of capital investment, financial arrangement, survey, design, equipment supply, installation, operation and maintenance for the renewable energy system, providing electricity for business based on customer’s need.
Every month, the beneficiary only needs to pay the electricity bill from the system at a discounted price lower than that of EVN. At the end of the contract, the entire system is transferred to the beneficiary for a symbolic price of 1 USD. Businesses that consume a lot of electricity & businesses for production are the customers that benefit the most from this model.