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Yes, that is essentially what a PPA sets out. There are several structures that can be deployed, but fundamentally its fixing the future revenue streams of the
by dav43 8y ago
Yes, that is essentially what a PPA sets out. There are several structures that can be deployed, but fundamentally its fixing the future revenue streams of the asset. The buyer of the PPA wins, as they get a fixed cost. The seller wins, their revenues are fixed and known, and they can get more leverage from debt finance because of this - thus, they get a better return on their equity investment.