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A power purchase agreement (PPA), or electricity power agreement, is a long-term contract between an electricity generator and a customer, usually an utility, government or company. [1] [2] PPAs may last anywhere between 5 and 20 years, during which time the power purchaser buys energy at a pre-negotiated price.
The Department of Defense announces contracts valued at $7 million or more each business day at 5 pm. [2] All defense contractors maintain CAGE (Commercial and Government Entity) Codes and are profiled in the System for Award Management (SAM). [3]
For most IPPs, particularly in the renewable energy industry, a feed-in tariff or power purchase agreement provides a long-term price guarantee.. IPPs have been successful in driving the electricity sector's transition to renewables globally, owning the majority of the currently operating renewable energy generation capacity.
A 2010 agreement with Iberdrola Renewables provides a potential 300MW future supply from Streator-Cayuga Ridge Wind Farm, Livingston County, Illinois [27] Waste-derived methane Biogas from the Maxson wastewater treatment plant in Memphis is burned in Allen Fossil Plant, accounting for a generating capacity of 4 MW.
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