PPA is a long-term electricity transaction contract, usually signed between **electricity producers (such as new energy power stations) and electricity purchasers (such as power-consuming enterprises, wholesalers, or grid companies)**, to lock in the price, delivery volume, and other conditions of electricity for the next few years.
The correlation in the energy storage and battery industry:
Joint PPA of energy storage and renewable energy: Enhance the stability and dispatchability of power supply;
Energy storage capacity or service contractization (Storage-as-a-Service): Mimic the PPA structure, package and price the services such as peak-valley arbitrage and frequency regulation of battery energy storage;
Support green financial tools: PPA provides predictable returns and is the basic support for green bonds and project financing;
Adapt to carbon neutrality goals: Power users achieve the consumption of renewable energy and Scope 2 emissions reduction by signing PPA.
