A Power Purchase Agreement (PPA) is a contract between a power producer and a buyer, typically a utility or large energy consumer. This agreement outlines the terms under which electricity will be sold, including the price, quantity, and delivery schedule. PPAs are commonly used in the renewable energy sector, such as for solar or wind projects, to ensure a stable revenue stream for the producer. In a PPA, the buyer commits to purchasing electricity for a specified period, often ranging from 10 to 25 years. This long-term commitment helps both parties plan their finances and investments. By securing a PPA, renewable energy projects can attract funding and contribute to a cleaner energy grid, benefiting the environment and society.