Power Purchase Agreement (PPA)

A PPA is a long-term contract to buy a plant's electricity at a set price. Kronos does not publish a specific required PPA price publicly.

What

Long-term contract to buy a plant's power

Sets

The price the plant needs to be financeable

Kronos required PPA

Shared under NDA

Relation

Sits above the LCOE floor, below FOAK LCOE

A power purchase agreement (PPA) is a long-term contract under which a buyer agrees to purchase a power plant's electricity at an agreed price for years or decades. PPAs are how most large generation projects get financed: a firm, contracted revenue stream is what lets a developer raise the capital to build. The required PPA price is the level at which a plant covers its costs and returns.

Kronos publishes a required PPA band, shared with commercial partners under NDA, for MetroVolt — sitting above the physical LCOE floor and consistent with the FOAK-to-fleet cost ladder. As with all the economics, it is presented as a transparent, assumption-stated range rather than a single optimistic figure, and it is the number a strategic offtake partner would actually contract against.