World Bank Power Purchase Agreement


The connecting facilities shall be the subject of a separate agreement. For a more detailed analysis of the problems associated with such PMAs, see the IFC`s Guide to Power Purchase Agreements (1996) – which can be found in Annex 2 (page 160) of the World Bank`s Concession Toolkit (pdf). A power purchase agreement (ECA) specifies the contract between two parties: (a) the seller producing electricity, and; (b) the purchaser who wishes to purchase electricity. It defines all the conditions of sale in between. A PPA secures cash flow for a clean construction transfer (BOT) or a concession project for an independent power plant (IPP). This is between the buyer (often a state-owned electricity supplier) and a private electricity producer. Duration – construction period plus [15] years of operation (3.1), with the possibility of renewal by mutual agreement [must review this complete renewal work with local supply rules] The above NSA should be distinguished from power purchase agreements in a deregulated electricity market where the agreements are usually power purchase agreements with a private producer where the power plant already exists or where the kr aftwerk is con built at the initiative of the private producer. For examples of this type of PPA, click on the following sample links: Edison Electric Institute Master Power Purchase & Sale Agreement (PDF) (4/25/2000) and Tri-State PPA. Agreement on the purchase of electrical power by a utility (the “Electricity Board”) and a small electricity producer operating a “mini hydroelectric system” (the “Seller”) It defines the conditions under which the seller must sell electricity from an electricity generation plant built by it, and the State energy supplier (buyer) undertakes to purchase capacity and energy supplied and install interconnections. There are examples of this type of ECA listed below. The ESAs in the sample were divided into those that are more relevant for small energy and rural projects and the more complex ONEAs that are relevant for large projects in developing countries.

15.5 – In the event of termination due to a default by the Seller, Utility has the option to purchase the Complex under loan documents for a higher value of the fully depreciated value of the Complex and the Residual Debt Service (less lump sum damages or other damages accrued on them). Pacificorp Power Purchase Agreement (PPA) for Large Power Plants (pdf) – Draft power purchase agreement developed by Pacificorp for power plants with a net capacity of more than 1000 kilowatts – relatively short agreement. Designed in the context of the U.S. regulatory structure. A Power Purchase Agreement (PPA) secures cash flow for a clean construction transfer (BOT) or a concession project for an independent power plant (IPP). This is between the “buyer” buyer (often a state electricity supplier) and a private electricity producer. The ECA described here is not suitable for electricity sold on world spot markets (see Deregulated Electricity Markets below). This summary focuses on a thermal base load system (the problems would be slightly different for thermal or hydraulic systems in the mid range or with a peak load). . . .

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