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In this tutorial, we explore risk allocation under Power Purchase Agreements (PPAs). Previous lessons covered energy sales responsibilities: the off-taker must purchase energy produced during the PPA term, while the energy seller must generate and deliver that energy. Beyond these core obligations, PPAs impose additional responsibilities on the energy seller. Since projects are built from the ground up, the energy seller is accountable for securing necessary permits and land. In some cases, particularly in emerging markets where the off-taker may be a government entity, these responsibilities can be shared between the seller and the off-taker.
