This AAE is carried out on the basis of a net meter tariff, approved by the National Public Utilities Commission or the Public Utilities Commission and carried out by the utility company. In this regard, it is necessary to ensure that the AAEs and the project are structured in accordance with the current net measurement rate and that all eligibility requirements, including timely application, are met. Net measurement rates vary by country and, in some cases, by supply area. In markets where the renewable developer does not have a retail license and the customer wants a physical PPP, an agreement can be reached with a local retailer to transfer the terms of the ppA between the customer and the renewable developer to customers. This take-take provision (often a form of net measurement) is currently very popular. „Community solar“ is used to designate a variety of project configurations within the development community. When, often, a structure means that the owner of the system sells electricity to the distribution company, provided that the owner of the system is able to accumulate a certain number of participants in the territory of the distribution company. Electricity producers enter into AAEs either bilaterally with a consumer company („Corporate PPA“) or with an electricity distributor who purchases the electricity generated („Merchant PPA“). The electricity distributor can continue to supply electricity to an electricity consumer (transform it again into a „corporate PPA“) or to negotiate electricity on an electricity exchange. Many international groups are already buying shares in their electricity consumption via AAAs or have announced their intention to do so more frequently (see there100.org/re100). They use AAEs to obtain stable and predictable electricity prices.
AAEs are an effective way to reduce the risk of electricity prices, particularly for operators of high-investment and low-cost facilities (such as photovoltaic and wind power plants). Since electricity payments are already insured to some extent, facility managers and financial banks may be more confident that revenues from the sale of electricity will effectively cover investment costs. This makes the project more cost-effective in the long run. In the case of decentralized production (where the generator is on a construction site and the energy is sold to the building occupants), commercial PPAs have developed as a variant allowing companies, schools and governments to source directly from the generator and not from the distribution company. This approach facilitates the financing of distribution-related production facilities, such as photovoltaics, micro-turbines, alternative piston engines and fuel cells. Depending on the regulation and market environment, different situations may occur, in which AAEs are a favourable form of financing or a stabilizing factor in long-term delivery. A POWER Purchase Agreement is a legal contract between an electricity producer (supplier) and an electricity buyer (buyer, usually an electricity supplier or a large electricity buyer/distributor). Contractual terms can take between 5 and 20 years during which the buyer buys energy and sometimes also capacity and/or ancillary services from the electricity producer. Such agreements play a key role in financing the self-employed (i.e.: