Power Purchase Agreement
A Power Purchase Agreement (PPA) is a procurement option available that allows for a municipality to enjoy the benefits of a renewable energy investment without taking on the risk of the investment. The municipality commits only to purchase the electricity generated from the system, at the agreed upon rates, for the life of the agreement.
As non-tax paying entities, municipalities are not able to take advantage of tax-based incentives for renewable energy. With CHP Clean Energy as the system owner, we are able to take advantage of all incentives which are then incorporated into the rates we extend to the client.
WWTF/Municipality: |
CHP Clean Energy: |
| Guarantee the Agreed Upon Minimum Biogas Output | Design System Based Upon Biogas Available |
| Agree to Purchase All Electricity Produced by System at the Agreed Upon Rates | Construct and Pay for System |
| Execute Land Lease with CHP Clean Energy to Maintain Proper On-Site Liabilities | Sell Electricity to WWTP Based on Agreed Rates |
| Deliver Recovered Heat to Specified Location | |
| Maintain System to Deliver Performance Standards |