A power purchase agreement is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The Power Purchase Agreement defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.
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Some trivial and yet complex questions associate with open access mechanism which needs to addressed through a pan India study which should prove to be a path finding guide for the project developers as well buyers to felicitate the same.
The pinnacle interest for the developers is to learn about as to why only renewable players are reaping benefits of direct power purchase agreements and why not the thermal power producers under independent and captive category enjoy the same? Queries like these and many more demanded an in-depth research to unearth the very reason as to why essentially open access is fast gaining popularity in India, which transformed into the research base for the report.
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