A power purchase agreement (PPA) is a financial mechanism that allows utilities and corporations to procure renewable energy (RE) from producers with minimal to no upfront capital cost in order to meet their RE goals.
This report comprises a literature review on the evolving practices in PPA implementation in the U.S. and Europe, including PPA types, key factors enabling PPAs, as well as challenges and limitations associated with PPA applications. Built on the experience and lessons learned from the U.S. and Europe, this report sheds light onto feasible options that could be adopted by China to enable the implementation of PPAs for RE investments.
