Power Services Agreement
Power Services Agreement (PSA)
To support corporates seeking greater control over their energy assets or facing limitations in participating through group captive structures, the Power Services Agreement (PSA) model offers a flexible and strategic alternative.
Under this model, businesses can benefit from renewable energy solutions while maintaining ownership advantages or aligning with their financial and investment preferences. The PSA structure is designed to address constraints related to minority investments and enable companies to adopt clean energy without the complexities of traditional captive or group captive frameworks.
Through a Power Services Agreement, a renewable energy developer designs, builds, and operates the power project, while the corporate client avails energy services under a structured agreement. This allows organizations to optimize energy costs, ensure reliable supply, and move toward sustainability goals without heavy operational involvement.
How PSA Works