Document background
Direct Power Purchase Agreements have become increasingly important in India's evolving electricity market, offering consumers the flexibility to procure power directly from generators. These agreements are particularly crucial for commercial and industrial consumers seeking reliable and cost-effective power supply alternatives. The Direct Power Purchase Agreement serves as a comprehensive framework documenting the commercial and technical arrangements between the parties, ensuring compliance with Indian electricity regulations, including the Electricity Act, 2003, and relevant state regulations. It includes essential provisions for power scheduling, tariff determination, payment security mechanisms, and operational procedures, while addressing specific requirements for grid access and transmission arrangements. This document type is commonly used when businesses seek to secure long-term power supply arrangements, particularly for renewable energy procurement or to meet sustainable energy goals.
