Power Purchase Agreement Cod

Performance guarantees allow the buyer to plan accordingly when developing new facilities or attempting to meet demand plans, which also encourages the seller to keep appropriate records. When the supplier`s service does not meet the contractual energy needs of the buyer, the seller is responsible for reducing these costs. Other warranties may be contractually agreed, including availability guarantees and performance curve guarantees. These two types of guarantees apply rather in regions where the energy used by renewable technologies is more volatile. [9] Profile risk arises from the fluctuation in the nature of renewable energy (e.g. B solar energy is not produced at night).