Negotiating the fine print
Power purchase agreements: Rosa Tarragó, Head of structured finance at Sowitec, analyzes the legal, technical and financial aspects of power purchase agreements from the perspectives of developers and equity investors, and country-specific PPA terms in South Africa.
The use of power purchase agreements for photovoltaic projects has been encouraged by the reduction of feed-in tariffs, the decrease of equipment costs, and the increase of end-consumer electricity prices. In general, there are two kinds of PPA: those with the private industry as counterparty; and those settled by law. This article aims to provide …
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