Document Type
Article
Publication Title
Viewpoint
Abstract
This note provides an introduction to the issues surrounding the design of Power Purchase Agreement's (PPAs). Programs to attract investment in small-scale electricity generation, often powered by renewable energy sources, have become increasingly common in the developing world as governments seek to both expand access to electricity and improve sustainability. A valuable tool for such programs is a well-crafted, standardized power purchase agreement, which can reduce transaction costs for generators and government agencies alike and substantially improve the economics of small generation facilities. This note discusses key considerations in designing a standardized agreement for a small power producer program. The technologies exist to mobilize small-scale and renewable power generation in developing countries, where power demand is increasing most rapidly. Well-designed small power producer programs, with balanced and standardized PPAs, can leverage financing and support efficient, cost-effective private investment in small scale power generation.
First Page
1
Last Page
4
Publication Date
3-2013
Recommended Citation
Steven Ferrey and Alejandro Francisco Moreno, World Bank Group, Viewpoint Note No. 337, Small Scale Generation (2013).
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License