Overview of Build Transfer Agreements (BTAs)

Build Transfer Agreements (BTAs) are a subset of the market that have gained popularity in the renewable energy industry. In contrast to historical Power Purchase Agreements (PPAs), where the developer sells electricity to the off-taker, BTAs involve the sale of the entire bundle of assets representing the renewable energy project to the off-taker. This structure is often favored by regulated utilities looking to own long-term renewable energy assets and rate base their ownership through state commissions. In BTAs, the developer takes on operating risk, credit risk, and other exposures associated with a 15 to 30 year commitment. The developer agrees to build the power plant according to the off-taker's specifications, and the off-taker is obligated to purchase the project upon meeting certain conditions.