PPA: cap/floor & indexation — avoiding overpaying
Pick a price model that keeps unit cost and risk under control over 5–15 years.
Price models
- Fixed — budget certainty, higher entry price.
- Cap/floor — limits extremes, shares upside.
- Indexation — market parity, needs hedging policy.
Volume & profile
- Model quarter‑hour profiles and balancing costs before signing.
- Consider seasonality, stoppages, power growth.
Critical clauses
- Force majeure/extraordinary events; termination mechanics.
- Settlement, data access, auditability, governance thresholds.