Offtaker (UK, electricity)

As used for electricity, the party who buys the electricity produced by the power station. This might be an independent third party or an affiliate of the project sponsor. In project financings, the offtaker's rights and obligations under the offtake agreement (such as a power purchase agreement) must be co-ordinated with the project company's rights and obligations under the loan documents, the construction contract and other applicable project documents. For more information, see Practice notes, Project finance: UK law overview: Offtaker, Power purchase agreement: key issues for drafting, reviewing and negotiating and Power purchase agreement: overview of a long-term PPA.