Document background
The Direct Power Purchase Agreement (PPA) is a crucial instrument in the Canadian energy market that enables direct electricity procurement between generators and consumers. It is particularly relevant in jurisdictions allowing direct power purchases outside the standard utility framework. This agreement type is commonly used by organizations seeking to secure long-term power supply, often with specific focus on renewable energy sources, and looking to manage electricity costs while meeting sustainability goals. The document encompasses all essential elements required under Canadian federal and provincial regulations, including power delivery terms, pricing structures, operational requirements, and compliance obligations. It's especially valuable for large power consumers wanting to bypass traditional utility arrangements and for power generators seeking reliable long-term revenue streams. The agreement must comply with provincial electricity market rules, as electricity regulation in Canada falls primarily under provincial jurisdiction.
