Factsheet: Power Purchase Agreement (PPA)

Power Purchase Agreement (PPA)

Key Information
Description: 
Short-form relatively simplified power purchase agreements developed for the Kenyan Regulatory Commission (formerly Kenyan Electricity Regulatory Board) under the Renewable Energy Portal for use in power generation facilities. There is a standard negotiated capacity based power purchase agreement to be entered into between the power producer and Kenya Power (the power utility). The standardized Power Purchase Agreements were developed to reduce the transaction costs involved in project start up and in the operational phase of small power producers (SPPs). And standard feed in tariff (FIT) power purchase agreements, one power purchase agreement for small scale generators (less than 10MW) and a standard power purchase agreement for larger scale generators (over 10MW).
Goal/Aim: 
Increase the share of renewable energy.

Sector/Topic targeted:

Status: