Energy

PPA (Power Purchase Agreement)

Also called Power Purchase Agreement.

A contract under which an electricity producer and an offtaker agree terms for electricity delivery over a defined period.

Source: SDA editorial · reviewed 2026-09-08

Related terms

LCOE (Levelized Cost of Energy)

The discounted lifetime cost of building and operating an energy asset divided by its discounted lifetime energy output, expressed as cost per unit of energy.

REC (Renewable Energy Certificate)

A certificate representing specified environmental attributes of a defined quantity of renewable electricity, subject to the rules of the applicable certificate system.

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