Scotty, We Need More Power

Power generators sell power through power purchase agreements, which operate as the main source of guaranteed revenue for both traditional and renewable power generation facilities. Because power generation facilities are often financed with non-recourse debt, lenders will pay close attention to the terms of a facility’s power purchase agreement before providing financing. This drafting checklist highlights certain key issues and raises points counsel should consider when drafting and negotiating a power purchase agreement.

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