The Commercial Solar Power Purchase Agreement (PPA) is a crucial document in the UAE's growing renewable energy sector, designed for commercial entities seeking to adopt solar power without significant upfront capital investment. This agreement is particularly relevant in the context of the UAE Energy Strategy 2050, which aims to increase clean energy contribution. The document provides a comprehensive framework for the long-term purchase of solar-generated electricity, typically spanning 15-25 years, and is structured to comply with both federal UAE laws and specific emirate-level regulations (particularly in Dubai and Abu Dhabi). It addresses key aspects such as energy pricing, system installation, maintenance responsibilities, performance guarantees, and grid connection requirements, while incorporating necessary provisions for UAE's unique commercial and regulatory environment.
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1. Parties: Identification of the Solar Power Provider and the Commercial Customer, including full legal names and registration details
2. Background: Context of the agreement, including the Customer's power requirements and the Provider's capability to install and operate solar facilities
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Term and Conditions Precedent: Duration of the agreement and conditions that must be met before the agreement becomes effective
5. Sale and Purchase of Energy: Core commercial terms including energy pricing, minimum purchase commitments, and billing arrangements
6. Installation and Commissioning: Requirements and process for installing and commissioning the solar power system
7. Operating Standards: Standards for system operation, including compliance with UAE technical requirements and grid codes
8. Metering and Monitoring: Specifications for measuring energy production and consumption
9. Maintenance and Repair: Responsibilities for system maintenance, scheduled maintenance protocols, and repair obligations
10. Performance Guarantees: Guaranteed performance levels and remedies for underperformance
11. Payment Terms: Detailed payment provisions, including calculation methods, billing periods, and payment procedures
12. Force Majeure: Events constituting force majeure and their consequences
13. Termination: Grounds for termination, termination process, and consequences
14. Liability and Indemnification: Allocation of risks and responsibilities between parties
15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Environmental Attributes: Provisions regarding carbon credits and other environmental benefits - include when environmental credits are relevant to the transaction
2. Battery Storage: Terms relating to energy storage systems - include when battery storage is part of the system
3. Grid Integration: Specific provisions for grid connection and export - include for grid-connected systems
4. Insurance: Detailed insurance requirements - separate section needed for high-value installations
5. Security Package: Financial security arrangements - include when required by size or risk profile of project
6. Emergency Response: Emergency protocols and procedures - include for critical facility installations
7. Relocation Rights: Terms for system relocation - include when customer facility is leased or relocation might be needed
1. Technical Specifications: Detailed technical specifications of the solar power system
2. Site Description: Description and drawings of the installation site
3. Energy Price Schedule: Detailed pricing structure including any escalation mechanisms
4. Performance Testing Procedures: Procedures for testing and verifying system performance
5. Form of Performance Security: Template for performance bonds or other security instruments
6. Maintenance Schedule: Detailed maintenance requirements and schedule
7. Interface Specifications: Technical specifications for grid connection and monitoring systems
8. Required Permits: List of required permits and responsibilities for obtaining them
9. Form of Direct Agreement: Template agreement for lender step-in rights if applicable
10. Operating Procedures: Detailed procedures for system operation and maintenance
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