Power Purchase Agreement

A Power Purchase Agreement ('PPA') is a contract between a generator and an electricity user that sets down the conditions and pricing that will govern the user's purchase of electricity from the generator.

Manorlane Energy will require the end user of the heat and power to sign a PPA for a term to be agreed, normally not less than five years.

The principal terms of a PPA are price, term and certainty. In many ways PPA terms vary in ways similar to mortgages, the longer the term a PPA covers, the lower the price is likely to be. The greater the certainty of the price within a PPA the lower the price is likely to be.

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