Document background
The Corporate Power Purchase Agreement (CPPA) is a crucial instrument in Canada's renewable energy market, enabling direct procurement of electricity between generators and corporate consumers. This document is typically used when organizations seek to secure long-term power supply, meet sustainability goals, or hedge against electricity price volatility. The agreement operates within Canada's complex energy regulatory framework, which involves both federal oversight and provincial jurisdiction over electricity markets. It includes detailed provisions for power delivery or settlement, pricing mechanisms, environmental attributes, and risk allocation. The CPPA can be structured as either a physical delivery contract or a virtual (financial settlement) agreement, depending on the provincial market structure and regulatory requirements. This document is particularly relevant in the context of Canada's clean energy transition and corporate environmental, social, and governance (ESG) initiatives.
