# Power purchase agreement (PPA)

> Long-term contract to buy renewable electricity from a specific generator.

**Canonical URL:** https://classa.info/glossary/ppa-power-purchase-agreement
**Page type:** glossary
**Last updated:** 2026-04-01T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Long-term contract to buy renewable electricity from a specific generator.
- Class A landlords with portfolio-scale demand sign 10–15 year PPAs with utility-scale solar/wind projects to hedge electricity prices and book Scope 2 reductions on a market basis..

## Key facts
- **category**: ESG
- **regionScope**: Global

---
Citation: Source: Class A Atlas (https://classa.info/glossary/ppa-power-purchase-agreement), updated 2026-04-01T00:00:00.000Z.