What is an New Energy Business
Enterprise (PPA)?
- A fixed contract between a renewable energy power producer and buyer to purchase electricity at a pre-agreed price for a pre-agreed period of time.
- By excluding the renewable energy electricity supply business from the electricity sales business*, direct transactions between renewable energy electricity suppliers and consumers will be possible while complying with the principle of prohibition of dual business under the Electricity Business Act.
* What is the prohibition of electricity business? It prohibits the same party from engaging in more than one type of electricity business, including power generation, transmission, distribution, electricity sales, and district electricity business.
Third-party PPA transaction flowchartFIGURE 1: Physical PPA Stakeholders and Processes
