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

  • 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..

Power purchase agreement (PPA)

ESG · Global

Short definition

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

Full definition

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.

Why this matters for Class A leasing

Power purchase agreement (PPA) is part of the esg vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.

Related topics

  • ESG / LEED for Tenants — How tenants evaluate, negotiate, and report on ESG performance in a Class A office lease.