Insights From Judgements On Gas Supply & Power Purchase Agreements

The Government of India has established Ministry of New and Renewable Energy in 1992 under which various acts, rules, regulations such as the Electricity Act, 2003 and the Electricity Rules, 2005 were enacted in order to provide a clear perspective in power purchase arrangements arrangements. However, the Parties need to be transparent about the terms that are being enumerated under such kind of arrangements.¹

Such arrangements work for the power generator and for the consumer or the offtaker who is actually receiving the power from such plant. Under this arrangement, the seller is usually the entity developing or owning the power plant and the buyer (generally known as the "Offtaker") is the one obtaining the energy from such plants.