Document background
The Bilateral Power Purchase Agreement (PPA) is a crucial commercial contract used in the Canadian energy market to establish direct electricity supply arrangements between power generators and consumers. This document is particularly relevant when organizations seek to secure long-term power supply at predictable prices, often in support of sustainability goals or cost management strategies. The agreement must navigate both federal and provincial regulatory frameworks, as electricity regulation in Canada is primarily managed at the provincial level with federal oversight for inter-provincial matters. The PPA includes detailed provisions for power delivery specifications, pricing mechanisms, performance standards, and risk allocation, while ensuring compliance with relevant provincial energy regulations, federal environmental standards, and grid operator requirements. It's commonly used for both conventional and renewable energy projects, requiring careful consideration of technical, commercial, and legal aspects specific to the Canadian energy sector.
