Document background
The Physical Power Purchase Agreement (PPA) is a fundamental contract type in the Canadian energy sector, used when a power generator agrees to physically deliver electricity to a purchaser. This document is essential for any direct power supply arrangement in Canada, whether for renewable or conventional power sources. It provides a comprehensive framework for the physical delivery of electricity, including specific terms for pricing, delivery points, metering, and operational requirements. The agreement must comply with both federal and provincial regulations, as electricity falls under provincial jurisdiction in Canada while still being subject to certain federal oversights. This document type is particularly relevant in contexts where large industrial or commercial consumers seek to secure their power supply directly from generators, or where renewable energy projects are being developed with specific off-takers. The PPA addresses critical aspects such as grid connection requirements, provincial market rules, environmental attributes, and where applicable, Indigenous rights considerations.
