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A Power Purchase Agreement (PPA) in England is a contract between a power generator and an offtaker to buy electricity over a long period, typically at a fixed or index-linked price. A solicitor drafts and negotiates the terms, including price, delivery, curtailment, credit support, and remedies for breach, and helps register and implement the agreement within the wider energy market framework overseen by Ofgem and the BEIS regime. The work matters because it shapes revenue certainty and risk allocation for a major capital project.
What a solicitor handles in these matters
A PPA involves complex tariff structures, credit arrangements, performance guarantees, and interplay with market mechanisms such as CfDs or wholesale price indexing. The solicitor handles due diligence on counterparties, drafts bespoke term sheets, and negotiates issues like take-or-pay provisions, tolerance bands, and termination rights to sustain project finance and ongoing operations.
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