Long-term PPAs

摘要

While renewable power generation has been the belle of the ball in federal and state energy policy, many renewable projects have stalled because of their inability to secure financing.Assuming a renewable project's technology is proven, whether its economics will support standalone project financing depends on one thing: predictable, long-term cash flows. The surest, most well-developed vehicle for establishing project cash flows is the long-term power purchase agreement (PPA). Encouraging prospective purchasers to offer renewable projects long-term PPAs with robust pricing would be the most direct way of attracting capital-debt and equity-needed to finance renewable generation.