Document background
The Direct Power Purchase Agreement (PPA) is a crucial instrument in Australia's energy market, enabling corporate entities to procure electricity directly from generators, often to meet sustainability goals and manage energy costs. This document type has gained prominence as organizations seek to secure renewable energy supply and demonstrate environmental commitment. The agreement covers essential elements including energy pricing, volume commitments, delivery points, performance standards, and environmental attributes. It must comply with Australian energy regulations, including the National Electricity Law and state-specific requirements. PPAs are particularly relevant for companies with significant energy consumption seeking price certainty and sustainability benefits, and for generators looking to secure long-term revenue streams. The document includes detailed technical and commercial provisions, risk allocation mechanisms, and often incorporates green certificate handling.
