The main objective of PPA is to create an environment of  “co-operative partnership” with the private sector, funding institutions, and others with interest in the development of the power industry and to enhance the role of the power sector in the Pacific Island Countries.

PPA is directly funded through annual subscriptions from the members. There are three categories of membership - Active Membership, Allied Membership and Affiliate Membership.  Active membership is limited to power utilities operating in the Pacific islands region whilst Allied membership is open to all other power utilities, organisations, and individuals with interest in the regions power industry. An Affiliate Member shall be any organisation whether incorporated or unincorporated that will not seek to gain a financial benefit from the PPA and would include multilateral and bilateral agencies, non-utility government entities and various international standards associations. An Affiliate Member is not a financial member of the PPA.

The Activities of the Association are directed by a Board of Directors which is comprised of the Chief Executive Officers of Active members and a Representative elected from the Allied members. The day to day affairs of the Association is managed through a Secretariat headed by an Executive Director with a total staff of five (5).

The idea for an Association came about in the course of 3 years of discussion among the region's power utilities, governments, aid donors, private sector companies and others with interest in the Pacific islands power industry.  These meetings brought to light many problems that Pacific island utilities and the power sector market face in common, which could be dealt with effectively through direct cooperation.

Through the PPA, Active members pool their resources and expertise for their common benefit and gain international representation and improved access to international power sector assistance programmes.  In addition, the direct links that the PPA provides between the private sector and utility members are designed to improve private sector services to member  utilities and make the private sector members’ presence in a geographically difficult marketing region more productive.  Allied members presently include Australian, American, Canadian, European, Japanese, New Zealand, Singapore, and Pacific based companies marketing generation, transmission and distribution plant, tools and equipment; cables; transformers; electrical control equipment and other power industry related products as well as engineering and business services.  The PPA is thus designed to improve the access of all members to the considerable resources and the expertise that exists in the region and around the world for the development of the Pacific islands power sector, and to take on the administrative responsibility of ensuring that all members are adequately served.