Document background
The Power Purchase Agreement Renewable (Energy) is a fundamental contract in Canada's renewable energy sector, used to facilitate the sale and purchase of electricity generated from renewable sources. This agreement is essential for project financing and development of renewable energy facilities, providing long-term revenue certainty for generators and reliable clean energy supply for purchasers. The document must comply with both federal and provincial regulations, as electricity falls primarily under provincial jurisdiction in Canada. It typically includes detailed provisions for energy pricing, delivery obligations, operational standards, and risk allocation, while addressing specific Canadian requirements such as environmental regulations, Indigenous rights considerations, and provincial market rules. The agreement is particularly crucial for new renewable energy projects seeking project financing and for corporate buyers looking to meet sustainability goals through direct power purchase from renewable sources.
