Document background
The Bilateral Power Purchase Agreement (PPA) is a fundamental document in South Africa's energy sector, used to establish long-term electricity supply arrangements between independent power producers and purchasers. This agreement type has gained particular significance in South Africa's evolving energy landscape, especially with the country's push toward independent power production and renewable energy integration. The document must comply with South African electricity regulations, particularly the Electricity Regulation Act and NERSA requirements, while addressing critical commercial aspects such as pricing, supply obligations, and technical standards. PPAs are essential for project financing and typically form the cornerstone of power project development, providing certainty for both generators and off-takers in the South African market.
