4 FAQs about Airport solar energy storage cabinet low-pressure type procurement contract

What is a solar power purchase agreement (PPA)?

A solar power purchase agreement (PPA) is a financial contract in which a third-party developer owns, operates, and maintains the photovoltaic system, and a customer agrees to purchase the system's electric output from the solar services provider for an agreed-upon price and for a predetermined period.

What is a solar RFP?

But first a few key definitions: A Request for Proposal (RFP) is a formal bid document to ask vendors to provide proposals for desired projects, as required by many public agencies (federal, state, local). A solar RFP outlines the photovoltaic (PV) product or service requirements, the contract terms, and bidding process.

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

What is a PPA for new energy storage resources?

Some PPAs for new energy storage resources have been structured as capacity-only contracts in which the developer is responsible for the sale of energy and all costs associated therewith—including the costs of the required energy procured from the utility.

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