Document background
The Physical Power Purchase Agreement (PPA) is a crucial document in the Australian energy market that facilitates direct electricity supply arrangements between generators and buyers. It is particularly relevant in scenarios where large energy users seek to secure long-term electricity supply at predictable prices, or when renewable energy generators need to establish bankable revenue streams for project financing. The agreement must comply with the National Electricity Law, National Electricity Rules, and relevant state-specific regulations. It typically includes detailed provisions for electricity delivery, pricing mechanisms, operational protocols, and risk allocation, while addressing specific requirements of the Australian electricity market structure. This document type has become increasingly important with the growth of renewable energy projects and corporate sustainability initiatives in Australia.
