What is a PPA, Power Purchase Agreement?
Power Purchase Agreement is a legal contract between an power producer company and a power purchaser agency. Under JNNSM initiative of government of India, to achieve 100 GW of solar power, out of which 120 GW is ground mounted and 80 GW roof mounted. Central government is offering lucrative rate under Power Purchase Agreement (PPA) for ground mounted and roof mounted projects from 1 MW to 1000 MW. PPA (power purchase agreement) is signed with government for sale of power @ 3-5 Rs / unit, varying on the size of project. Being the safest investment for the investor, a lot of private companies are also participating in the government driven schemes. Under “Open Access power policy” the industries are getting direct power from independent power producers, within the state and interstate as well.