A Power Purchase Agreement (PPA) is a key contract underpinning any independent power generation initiative, particularly in developing markets. It establishes a critical connection between the power producer (project company) and the buyer (offtaker), providing the foundation for sponsors, developers, and lenders to confidently invest in the project by securing a steady revenue stream over its lifespan. The objective of this master’s thesis is to provide an overview of the context and key elements involved in drafting a PPA, with a focus on the most crucial clauses. Additionally, it delves into the negotiation process for PPAs in both small- and large-scale projects, while offering updated guidance on emerging topics such as commercial and industrial PPAs, as well as renewable PPAs. Specifically: In chapter 1 is referred about the drivers for developing a renewable energy strategy and the ways that this can be implemented in various manners. In chapter 2, there is a reference about the origins of PPAs, what they are and since when they are being implemented. In addition, the common PPA and PPA price structures are analyzed. At the end of the chapter the drivers and the benefits of corporate renewable PPAs are being referred. In chapter 3, there is reference related to Risks and the Challenges that offtakes and developers may face during the PPA crafting. Specific Mitigation measures and actions are proposed for each case. In chapter 4, there is a short reference to the financing of the power projects and the significance of it. Finally, in chapter 5 predictions are expressed about the past year and for the following year based on research that have been made.