Document background
The Commercial Power Purchase Agreement (PPA) serves as the primary contractual framework for long-term electricity supply arrangements between power generators and commercial consumers in Canada. This document is essential when businesses seek to secure reliable power supply, potentially at predetermined prices, while possibly meeting sustainability goals through renewable energy sourcing. The agreement must align with both federal energy regulations and specific provincial requirements, as electricity markets in Canada are primarily regulated at the provincial level. The PPA covers crucial aspects including delivery terms, pricing mechanisms, performance guarantees, and risk allocation, while incorporating necessary provisions for environmental attributes and regulatory compliance. It's particularly relevant for businesses with significant electricity consumption seeking to manage their energy costs and supply security.
