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2. Power purchase agreement - Wikipedia

   en.wikipedia.org/wiki/Power_purchase_agreement

   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.

3. Take-or-pay contract - Wikipedia

   en.wikipedia.org/wiki/Take-or-pay_contract

   This "penalty" price may be lower, say $40 a ton. Take-or-pay clauses are common in the energy industry and, in particular, for gas sales ; see volume risk . The High Court in England and Wales recognises such clauses as "a familiar provision in commercial contracts", but also notes that they have been a source of commercial dispute "for more ...

4. Electricity pricing - Wikipedia

   en.wikipedia.org/wiki/Electricity_pricing

   According to the U.S. Energy Information Administration (EIA), "Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid." Where pricing forecasting is the method by which a generator, a utility company, or a large industrial consumer can predict the wholesale prices of ...

5. Public utility - Wikipedia

   en.wikipedia.org/wiki/Public_utility

   For example, if the rate of return is set at five percent, then the firm can charge a higher price simply by investing more in capital than what it is actually needed (i.e., 5% of $10 million is greater than 5% of $6 million). Price cap regulation: regulators directly set a limit on the maximum price. This method can result in a loss of service ...

6. Cost of electricity by source - Wikipedia

   en.wikipedia.org/wiki/Cost_of_electricity_by_source

   The levelized cost of electricity (LCOE) is a metric that attempts to compare the costs of different methods of electricity generation consistently. Though LCOE is often presented as the minimum constant price at which electricity must be sold to break even over the lifetime of the project, such a cost analysis requires assumptions about the value of various non-financial costs (environmental ...

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