Under an AAE, the seller is the entity to which the project belongs. In most cases, the seller is organized as an ad hoc vehicle, whose main objective is to facilitate the financing of non-regression project funds. AAEs are often seen as a central document in the development of independent power generation units (power plants). Because it defines the revenue conditions for the project and the quality of the credit, it is essential for obtaining project financing without recourse. Power Purchase Agreement (AAE) – Short form agreement for small energy projects in Namibia Standard-contract to purchase electricity in abbreviated version for small energy projects in Namibia. This is part of a series of documents, including a fuel supply agreement, found at the Nib Electricity Control Board. These are examples of this type of PPP that are listed below. AAEs have been subdivided into AAEs that are more relevant to smaller and more rural energy projects, and more complex AAEs, relevant to large projects in developing countries. A POWER Purchase Agreement is a legal contract between an electricity producer (supplier) and an electricity buyer (buyer, usually an electricity supplier or a large electricity buyer/distributor). Contractual terms can take between 5 and 20 years during which the buyer buys energy and sometimes also capacity and/or ancillary services from the electricity producer. These agreements play a key role in financing assets of own property producing electricity (i.e. not held by a utility company).
The seller under the AAE is usually an independent electricity producer or a „PPI.” The maintenance and operation of a production project is the responsibility of the seller. This includes regular inspection and repair if necessary to ensure prudent practices. Liquidated damages are invoked if the seller does not comply with these circumstances. As a general rule, the seller is also responsible for installing and maintaining a meter to determine the amount of production that is being sold. In these circumstances, the seller must also provide, at the buyer`s request, real-time data, including atmospheric data relevant to the type of technology installed.  There are several solar installations that offer electricity purchase and lease contracts. These companies use the federal and federal energy rebates to install free or very low costs on solar roofs on homes.