#HowToPPA: An Examination of the Regulatory and Commercial Challenges and Opportunities Arising in the Context of Private Power Purchase Agreements for Renewable Energy

Abstract

In recent years, private companies in the United States have increasingly entered into power purchase agreements (PPAs) to procure renewable power from project developers. However, despite favourable market and regulatory regimes for the use of PPAs in Alberta, renewable energy procurement has largely remained the purview of government. To facilitate the increased use of private PPAs in Canada, this article seeks to provide potential renewable energy project developers and customers with a better understanding of how these agreements operate. The authors “demystify” PPAs by reviewing the regulatory structures for PPAs in Alberta, analyzing the factors that might motivate parties to enter into a PPA, and discussing the key contractual terms common to most PPAs.