Electricity supply contracts ensure that once capital investments are completed, the project generates a return by reducing liquidity uncertainty. It depends of course on the location of the installation and the type (solar or wind). You can reduce this risk by selecting certain PPP structures. An electricity purchase agreement (AAE) is a contractual agreement between energy buyers and sellers. They meet and agree to buy and sell an amount of energy generated or generated by a renewable asset. AAEs are generally signed for a long-term period of between 10 and 20 years. Solar leasing and solar PPAs look like renting your solar panel installation. You enter into an agreement with the solar rental company that entitles you to the benefits of the system (i.e. the energy generated by solar panels) for the duration of the contract, which is usually about 20 years. For someone who doesn`t yet have a thorough understanding of how solar energy saves money on their electricity bill, the difference between an AAE (Power Purchase Agreement) and leasing can be subtle and almost indistable. Solar leasing and solar AAEs are agreements by which the homeowner does not own the solar installation on their roof, he is in the possession of the leasing company or PPP.
There are advantages and disadvantages between this model and a traditional French standard electricity supply contract (Indicative models of electricity obligation contracts) for small installations/renewable energy sources, 2000 (Law 2000-108 of February 10, 2000) and the corresponding decree (Decret-Nr.2000-877 of 7 September 2000) and the 2001 decree (Decret-Nr. 20 01-410 of 10 May 2001), whose electricity system and distributors must procure electricity from small generators and wind power – Stop 8 June 2001 setting out the conditions for the purchase of electricity generated by installations using wind mechanical energy as referred to in Article 2 (2o) of Decree No. 2000-1196 of 6 December 2000. Power Purchase Agreement (PPA) and Implementation Agreement , established by the international law firm (issued in 2006) for The Private Power and Infrastructure Board of Pakistan – Standard Electricity Mooring Contract and Fossil Fuel Implementation Agreement developed by the International Law Firm for the Private Power and Infrastructure Board of Pakistan, as well as a price model for AAEs and the directive that established the general framework that led to the development of the three standard Policy 2002 (PDF) forms documents.