A power purchase agreement (PPA) is a contract between two parties, typically a power generator and a utility or end user, in which the generator agrees to provide a certain amount of electricity over a specified period of time. PPAs are increasingly being used to promote renewable energy, and the northern Indian state of Uttarakhand is no exception.

Uttarakhand, which is known for its scenic beauty and rich biodiversity, has set ambitious targets for renewable energy. The state aims to achieve 4,000 megawatts (MW) of installed capacity in renewable energy by 2022, which includes 2,000 MW of small hydropower projects, 1,000 MW of solar power, and 1,000 MW of wind power.

To achieve these targets, Uttarakhand has been actively promoting the use of PPAs. The state government has signed several PPAs with renewable energy developers to purchase electricity at attractive rates. These agreements ensure that renewable power generators have a guaranteed revenue stream, while the state benefits from a steady supply of clean energy.

One example of a successful PPA in Uttarakhand is the 24 MW small hydropower project developed by L&T Power. The project was commissioned in 2013 and has been selling power to the state utility through a PPA. The PPA provides a fixed tariff rate and a long-term power purchase agreement, which ensures that the project remains financially viable over its entire lifetime.

Another example is the 12 MW solar power project developed by Azure Power. The project was commissioned in 2016 and has been selling power to Uttarakhand Power Corporation Limited through a PPA. The PPA provides a fixed tariff rate for 25 years, which ensures that the project remains financially viable and helps the state meet its renewable energy targets.

PPAs also play a key role in attracting private investment in Uttarakhand`s renewable energy sector. Investors are more likely to invest in renewable energy projects if they have a guaranteed revenue stream through a PPA. The state`s renewable energy policy, which includes attractive incentives for renewable energy developers and streamlining of the approval process, has also been instrumental in attracting private investment.

In conclusion, PPAs are a key tool for promoting renewable energy in Uttarakhand. They provide a guaranteed revenue stream for renewable energy developers, ensure a steady supply of clean energy for the state, and attract private investment in the sector. As Uttarakhand continues to pursue its ambitious renewable energy targets, PPAs will play an increasingly important role in achieving these goals.