Document background
The Physical Power Purchase Agreement (PPA) is a fundamental document in Malaysia's energy sector, used to establish and govern the relationship between power generators and purchasers of electricity. This agreement is essential when a power producer wishes to sell electricity to an offtaker through physical delivery, typically involving connection to Malaysia's national grid. The document must comply with the Malaysian Electricity Supply Act 1990, Energy Commission Act 2001, and other relevant regulations. It becomes particularly important in cases involving independent power producers, renewable energy projects, or large industrial consumers seeking dedicated power supply arrangements. The agreement covers crucial aspects such as power delivery commitments, pricing structures, technical specifications, and operational procedures, all while ensuring alignment with Malaysia's single buyer market structure and grid code requirements.
