RENEWCONNECT - All about renewables & power sector

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 proportion...

 A Power Purchase Agreement (PPA) is a legally binding contract between a power producer (such as a solar, wind, or thermal energy plant) and a buyer (usually a power distribution company or bulk electricity consumer). The contract specifies terms such as the duration of the agreement, price per unit of power, scheduling, penalties for non-compliance, and mechanisms for dispute resolution. In India, PPAs are governed by both national regulations and state-specific policies, primarily to foster investments in renewable energy and ensure a stable energy supply. Key Elements of a Power Purchase Agreement in India Contractual Duration : PPAs in India typically have a tenure ranging from 10 to 25 years for renewable energy sources, providing long-term stability for both the generator and the buyer. Tariff Structure : Tariffs can be fixed (determined at the start of the contract) or variable (based on market conditions or linked to factors like inflation or fuel cost index). Competitive ...