PPA certification

KEMA offers PPA (Power Purchase Agreement) certification services based on our technical, operational and power generating expertise

A Power Purchase Agreement (PPA) is a legal contract between an electricity generator (in general an IPP) and a host site owner or lessor. The host or lessor purchases water, power or heat. Such agreements play a key role in the financing of electricity generating assets. Under the terms of a PPA, the IPP typically assumes the risks and responsibilities of ownership when it purchases, operates, and maintains the facility.

The IPP secures funding for the project, maintains and monitors the energy production, and sells the electricity to the host at a contractual price for the term of the contract. By clearly defining the output of the generating assets and the credit of its associated revenue streams, a PPA can be used by the IPP to raise non-recourse financing from a bank or other financing counterparty.

As power generating facilities are huge capital investments and the PPA represents a long-term contractual relationship, it is obvious that both parties have high interest and high (financial) risk. To cover this, KEMA offers its technical, operational and power generating expertise to certify the PPA for the parties involved.

A typical scope of Power Purchase Agreement (PPA) certification comprises the following certificates:

• readiness for commissioning (construction complete)

• readiness for synchronization

• commissioning

• successful commissioning testing

• Capacity Test Certificate.