An independent power producer (IPP) is a company that finances, builds, owns and operates power plants and sells the electricity to consumers or utilities, rather than the consumer owning the plant. Alpha Devraj operates solar plants as an IPP and supplies clean power to businesses.
A PPA is a long-term contract between a power producer and a buyer that fixes the tariff and terms at which electricity will be supplied, typically for 10–25 years. It gives the buyer predictable power costs and the producer revenue certainty.
Zero capital expenditure, immediate savings compared with grid tariffs, no operations or maintenance responsibility, and progress toward renewable energy and decarbonisation targets. You simply consume the power and pay the agreed PPA tariff.
Commercial and industrial consumers can procure IPP power through open access or group-captive arrangements, and distribution companies (DISCOMs) purchase IPP power under long-term PPAs.
The tariff reflects the project cost, expected generation, financing terms and contract duration. Solar PPA tariffs in India are generally competitive with, or lower than, prevailing industrial grid tariffs, which is what creates savings for the buyer.