Various PPAs used in Power or Energy Sector

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Please find some of the different types of PPAs (Power Purchase Agreements) that are used in the power or energy sector in the electricity market is as follows: 

Types of PPAs in the Power Sector

A. Based on Contracting Structure

1. Utility / DISCOM PPA (Regulated PPA)

  • Long‑term agreements (15–25 years) between generators and DISCOMs/State utilities.
  • Tariff discovered through competitive bidding (per Electricity Act 2003 & CERC/APERC guidelines).

2. Corporate / C&I PPA

  • For large commercial & industrial consumers.
  • Two models:
    • On‑site PPA (solar rooftop, captive behind‑the‑meter)
    • Off‑site PPA (open-access RE with banking/wheeling arrangements)

3. Captive PPA (as per Electricity Rules, 2005 – Captive Rules)

  • Consumer owns ≥26% equity in generating plant & consumes ≥51% power annually.
  • Exempt from CSS, AS, some grid charges (state-specific).

4. Group Captive PPA

  • Multiple corporate consumers form an SPV.
  • Same rules as captive—each consumer should own equity proportional to consumption.

B. Based on Market Model / Power Delivery

5. Physical (Sleeved) PPA

  • Actual electricity is delivered through DISCOM/utility network.
  • Consumer pays open-access charges + generator tariff.

6. Virtual / Financial / Synthetic PPA

  • No physical delivery; only financial settlement.
  • Corporation signs contract with generator at a fixed price; settles difference with market price.

C. Based on Tariff Structure

7. Fixed Tariff PPA

  • Single tariff for the entire contract period.
  • Common for solar, wind, hydro.

8. Escalating Tariff PPA

  • Tariff increases annually (e.g., ₹0.03–₹0.05/kWh per year).

9. Two‑Part Tariff PPA

  • Capacity Charge (₹/MW/Month) + Energy Charge (₹/kWh)
  • Used heavily in thermal, gas, hydro, and BESS PPAs.

10. Time‑of‑Day (ToD) / Time‑of‑Use PPA

  • Different tariffs for peak, off‑peak, and solar hours.

D. Based on Technology

11. Renewable Energy PPA

  • Solar, wind, hybrid, RTC (Round‑the‑clock), peak‑power, BESS‑integrated PPAs.

12. Thermal PPA

  • Coal or gas-based plants; typically two-part tariff regulated framework.

13. Hydro PPA

  • Long-term, often with normative capacity and seasonal considerations.

14. BESS (Energy Storage) PPA / TSA

Where payment is typically:

  • ₹/MW/Month availability charge, and/or
  • ₹/cycle energy throughput charge.
  • Examples: SECI, NHPC, NTPC BESS tenders.

E. Based on Trading/Exchange Model

15. Short-term PPA

  • Duration <1 year (competitive bilateral, DEEP portal, exchanges).

16. Medium-term PPA

  • 1–5 years through competitive bidding framework.

17. Long-term PPA

  • 7 years (common for RE and thermal).

F. Special Models

18. Build-Own-Operate (BOO) PPA

  • Developer builds and operates plant; buyer signs long tenure contract.
  • Standard model for solar/wind.

19. Build-Operate-Transfer (BOT) / DBFOO

  • Ownership transfers to utility after contract period.

20. Pay‑as‑Generated PPA

  • Applicable for variable RE (wind, solar).

21. Firm & Dispatchable / RTC Power PPA

  • RE + storage + balancing power to ensure 80–100% round‑the‑clock availability.

22. Ancillary Services PPA / Fast Response PPA

  • For frequency regulation, reserves, black start capabilities, BESS-based FFR services.

Quick Summary Table

CategoryPPA Types
By BuyerUtility PPA, C&I PPA, Captive, Group Captive
By DeliveryPhysical, Virtual/Synthetic
By TariffFixed, Escalated, Two-part, ToD
By TechnologySolar, Wind, Hybrid, RTC, Thermal, Hydro, BESS
By TenureShort, Medium, Long term
Special ModelsBOO, BOT, Pay-as-generated, Ancillary

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