Small Power Purchase Agreement Application for Renewable Energy Development: Lessons from Five Asian Countries

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Publication Date:
Feb 01, 2004
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Five innovative nations in Asia have been among the first in developing small power producer (SPP) programs to promote renewable energy development in-country. These programs have been very successful in some of these nations in promoting during just a few years a substantial contribution of renewable small power projects to the national energy supply. Almost 4 percent of power supply in India and Thailand are from SPP renewable energy initiatives.

In the Overview and in the discussion of each country that follows, this report identifies the most successful program features, innovative elements, and power purchase agreement (PPA) design provisions that have achieved notable success and that could be the basis of programs in other nations. This report evaluates what has worked best and what mistakes are to be avoided. It is designed to transfer the legal “technology” of how to create a PPA and SPP program to most efficiently accomplish renewable energy and small power program goals. 

Five innovative nations in Asia have been among the first in developing small power producer (SPP) programs to promote renewable energy development in-country. These programs have been very successful in some of these nations in promoting during just a few years a substantial contribution of renewable small power projects to the national energy supply. Almost 4 percent of power supply in India and Thailand are from SPP renewable energy initiatives.

In the Overview and in the discussion of each country that follows, this report identifies the most successful program features, innovative elements, and power purchase agreement (PPA) design provisions that have achieved notable success and that could be the basis of programs in other nations. This report evaluates what has worked best and what mistakes are to be avoided. It is designed to transfer the legal “technology” of how to create a PPA and SPP program to most efficiently accomplish renewable energy and small power program goals. 

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