Recently, various states have been working to renegotiate the Power Purchase Agreements (PPAs) with the renewable energy companies. A  Power Purchase Agreement (PPA) is  a  contract between two parties, one who generates electricity and one who is looking to purchase electricity.These define all of the commercial terms for the sale of electricity between the  two  parties, including when  the  project  will  begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.In India, the state governments have entered into such agreements with private renewable energy companies to establish the power plant and sell the power back to the government.Many states including Andhra Pradesh & Tamil Nadu have sought to renegotiate power purchase agreements (PPAs) which were signed a couple of years ago with producers of wind & solar power.