Power Purchase Agreement

Geothermal projects have huge upfront capital expenditure, and developers need long-term contracts to lock in cash flow to obtain project financing; banks and investors often regard PPAs as a prerequisite for bankability.

If Fervo's order volume materializes in the form of PPAs, it means its customers have already incorporated geothermal into their multi-year energy planning.

This deal by Anthropic is closer to direct investment or building its own power generation assets rather than a traditional power purchase agreement (PPA).

A power purchase agreement (PPA) is a long-term power purchase contract signed between a data center operator and a power generator, with the generation assets still held and operated by a third party.

There is a gap between corporate green power procurement commitments and the actual carbon intensity of the physical grid; power purchase agreements can offset emissions in accounting terms but do not necessarily change the physical power supply mix in a specific region at a specific time.

Power purchase agreements (PPAs) in the fusion industry typically include technology milestone clauses and price adjustment mechanisms to share the risk when technology falls short of expectations.

Over the past several years, technology companies have primarily focused on power purchase agreements for wind and solar energy to offset carbon emissions.

Power companies establish cooperative relationships with fusion startups by signing Power Purchase Agreements (PPAs) or through direct investment.

A Power Purchase Agreement (PPA) is a long-term contract mechanism in which the buyer commits to purchasing the seller's electricity output at an agreed price over a specified future period, with a typical term of 10–25 years.