What Is a Power Purchase Agreement?

The so-called direct purchase of electricity by large users refers to the agreement between the power plant and the large power purchaser of the terminal to purchase power and the price of the power through a direct transaction, and then entrust the power grid company to transfer the agreed power from the power generation company to the large power purchaser of the terminal. Pay for transmission and distribution services undertaken by grid companies.

Direct electricity purchase

The pilot scope of direct power purchase by large users may be further expanded, which is considered by the industry as a substantial measure of electricity price reform.

From the information point of view, it is still difficult to judge the impact on this type of company, because

"Sichuan Province's Pilot Measures for Direct Purchase of Electricity from Power Generation Enterprises" stipulates that power users participating in the direct purchase of electricity pilots must meet nine conditions, including:

--meets the

Before the stipulated time, the power user submits a written application for direct power purchase in the next year's economic management department. The economic management department, together with relevant departments, will review and approve the power user in accordance with the relevant requirements of the national industrial policy and environmental protection policy.