U.S. Department of Energy - Energy Efficiency and Renewable Energy
Tribal Energy Program
For projects destined to provide merchant power into the regional transmission system, developing the power purchase agreement (PPA) and working your way through the interconnection process should be done early. Much of this should have been explored and understood during the feasibility assessment. The PPA has enormous influence over the economic and financial viability of the project. The PPA should address the purchase power price (¢/kWh, including any time of day or seasonal variations), the duration or term of the agreement, and interconnection and operational requirements.