Power Purchase Agreement
A Power Purchase Agreement (PPA) is a special type of business contract that's very common in the solar and renewable energy industry. It's a long-term agreement where one company agrees to buy electricity from another company that produces it, usually through solar panels or wind farms. Think of it like a subscription service for electricity - the buyer commits to purchasing power at a set price for many years (typically 15-25 years). These agreements are important because they help make renewable energy projects financially possible by guaranteeing long-term income. When you see PPA on a resume, it usually means the person has experience with either creating these agreements, managing them, or working on projects that involve them.
Examples in Resumes
Negotiated 20-year Power Purchase Agreement for 50MW solar farm project
Managed portfolio of PPAs worth $100M in annual revenue
Led team in structuring Power Purchase Agreements for commercial solar installations
Typical job title: "PPA Managers"
Also try searching for:
Where to Find PPA Managers
Professional Organizations
Job Boards
Industry Networks
Example Interview Questions
Senior Level Questions
Q: How would you evaluate the financial viability of a PPA for a large solar project?
Expected Answer: Should discuss understanding of long-term energy pricing, risk assessment, credit analysis of buyers, and ability to analyze both the financial and technical aspects of solar projects.
Q: What are the key risks in PPA contracts and how do you mitigate them?
Expected Answer: Should demonstrate knowledge of contract terms, performance guarantees, pricing structures, and risk management strategies in renewable energy projects.
Mid Level Questions
Q: What are the main components of a PPA contract?
Expected Answer: Should explain basic elements like contract duration, pricing structure, performance requirements, and maintenance responsibilities in simple terms.
Q: How do you determine appropriate PPA pricing?
Expected Answer: Should show understanding of electricity market rates, project costs, inflation factors, and competitive pricing strategies.
Junior Level Questions
Q: What is a Power Purchase Agreement and why is it important?
Expected Answer: Should be able to explain that it's a contract to buy power from a renewable energy source and why it's important for project financing.
Q: What are the basic benefits of PPAs for buyers and sellers?
Expected Answer: Should explain how buyers get stable energy prices and sellers get guaranteed income, making projects financially viable.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of PPA structures
- Energy market fundamentals
- Contract administration
- Basic financial analysis
Mid (2-5 years)
- PPA negotiation and pricing
- Project financial modeling
- Risk assessment
- Relationship management
Senior (5+ years)
- Complex deal structuring
- Portfolio management
- Strategic planning
- Team leadership
Red Flags to Watch For
- No understanding of basic energy market principles
- Lack of contract negotiation experience
- Poor grasp of financial concepts
- No knowledge of renewable energy industry standards
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