The Power Purchase Agreement Energy Storage template is designed for use in the United Arab Emirates, specifically tailored to the country's evolving energy landscape and regulatory framework. This document is essential when establishing long-term contractual relationships for energy storage services, typically used between facility owners/operators and power purchasers such as utility companies. The agreement encompasses crucial elements including technical specifications, operational parameters, performance requirements, payment structures, and regulatory compliance measures. It aligns with the UAE's Energy Strategy 2050 and relevant federal and emirate-level energy regulations, making it particularly relevant for projects contributing to grid stability and clean energy integration. The document addresses both traditional and emerging storage technologies, incorporating flexibility for technological advancement while maintaining compliance with UAE legal requirements.
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1. Parties: Identification of the contracting parties including the facility owner/operator and the power purchaser
2. Background: Context of the agreement, including project overview and relevant regulatory framework
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 satisfied before the agreement becomes effective
5. Storage Facility Specifications: Technical specifications of the energy storage facility including capacity, response time, and operational parameters
6. Operating Procedures: Detailed procedures for charging, discharging, maintenance, and emergency operations
7. Performance Requirements: Specific performance metrics, availability requirements, and response times
8. Dispatch and Scheduling: Procedures for scheduling storage services and dispatch instructions
9. Metering and Testing: Requirements for measuring stored energy, delivered energy, and facility performance testing
10. Payment Provisions: Payment structure, rates, and calculations for storage services
11. Force Majeure: Events constituting force majeure and their consequences
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Insurance: Required insurance coverage for the facility and operations
14. Default and Termination: Events of default, cure periods, and termination rights
15. Dispute Resolution: Procedures for resolving disputes, including reference to UAE courts or arbitration
1. Construction and Commissioning: Required if the storage facility is not yet built, covering construction milestones and commissioning procedures
2. Grid Connection: Required if new grid connections need to be established, detailing connection requirements and responsibilities
3. Environmental Credits: Include if the project generates environmental attributes or clean energy certificates
4. Technology Upgrade Provisions: Include for long-term agreements where technology updates may be necessary
5. Local Content Requirements: Include if there are UAE local content requirements applicable to the project
6. Refinancing Provisions: Include if project financing arrangements may need to be modified during the term
7. Interface with Other Facilities: Required if the storage facility interfaces with other power generation or transmission facilities
1. Technical Specifications: Detailed technical parameters of the storage facility including capacity, efficiency, and response characteristics
2. Operating Procedures Manual: Detailed procedures for daily operation, maintenance, and emergency response
3. Testing Procedures: Procedures for conducting performance tests and measuring compliance
4. Payment Calculations: Detailed formulas and examples for calculating payments
5. Form of Performance Security: Template for performance bonds or other security instruments
6. Interconnection Requirements: Technical requirements for grid connection and interface
7. Environmental and Safety Requirements: Environmental compliance requirements and safety procedures
8. Communication Protocols: Procedures for operational communications and notifications
9. Permitted Planned Outage Schedule: Schedule of allowed maintenance periods and procedures
10. Key Performance Indicators: Detailed metrics for measuring facility performance and availability
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