Document background
Direct Power Purchase Agreements are crucial instruments in Malaysia's energy market, enabling direct electricity trading between generators and consumers. These agreements are particularly relevant when commercial or industrial consumers seek to secure reliable power supply or meet sustainability goals through direct procurement from specific power sources. A DPPA typically includes detailed terms covering power supply obligations, pricing mechanisms, technical requirements, and regulatory compliance under Malaysian law. The agreement structure must align with the Electricity Supply Act 1990 and relevant regulations while accommodating specific commercial requirements of both parties. This document type is increasingly important in Malaysia's evolving energy landscape, particularly with the growing focus on renewable energy sources and corporate sustainability initiatives.
