Power Purchase Agreement
A Power Purchase Agreement (PPA) is a business contract commonly used in the energy industry. It's a long-term agreement where one company agrees to buy electricity from another company that produces it, usually from renewable sources like solar 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 in energy storage jobs because professionals often need to understand, negotiate, or manage these contracts. Similar terms you might see include Energy Purchase Agreement or Electricity Purchase Agreement.
Examples in Resumes
Negotiated three Power Purchase Agreements for utility-scale solar projects
Managed implementation of PPAs worth $50M for wind energy storage facilities
Led team in developing financial models for Power Purchase Agreements and PPAs
Typical job title: "Energy Contract Managers"
Also try searching for:
Where to Find Energy Contract Managers
Professional Organizations
Job Boards
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How would you evaluate the risks in a 20-year Power Purchase Agreement?
Expected Answer: Should discuss price changes over time, creditworthiness of parties, regulatory changes, grid connection issues, and backup plans if power production falls short.
Q: What are the key elements you would include in a PPA for a large-scale energy storage project?
Expected Answer: Should mention pricing structure, duration, performance guarantees, maintenance responsibilities, output requirements, and termination conditions.
Mid Level Questions
Q: What are the main differences between PPAs for solar and wind projects?
Expected Answer: Should explain how different generation patterns affect pricing, contract terms, and performance guarantees between solar and wind projects.
Q: How do you calculate the financial benefits of a PPA?
Expected Answer: Should discuss comparing current utility rates with PPA rates, considering inflation, maintenance costs, and long-term savings predictions.
Junior Level Questions
Q: What is a Power Purchase Agreement and why is it important?
Expected Answer: Should explain that it's a contract to buy power from a generator, usually renewable energy, and why it helps both buyers and sellers have long-term security.
Q: What are the basic components of a PPA?
Expected Answer: Should mention price per unit of electricity, contract length, delivery point, minimum purchase requirements, and basic performance standards.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of PPAs
- Contract administration
- Energy industry fundamentals
- Basic financial calculations
Mid (2-5 years)
- PPA negotiation
- Financial modeling
- Project management
- Risk assessment
Senior (5+ years)
- Complex deal structuring
- Strategic planning
- Team leadership
- Stakeholder management
Red Flags to Watch For
- No understanding of basic energy industry terms
- Lack of experience with contract management
- Poor grasp of financial concepts
- No knowledge of renewable energy basics
Related Terms
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