Physical Power Purchase Agreements in Switzerland are essential instruments for securing long-term electricity supply arrangements between power generators and consumers or utilities. These agreements are particularly relevant in today's energy market where organizations seek to secure reliable power supply while potentially meeting sustainability goals. The document is used when parties require physical delivery of electricity, rather than financial settlement, and must comply with Swiss energy regulations, including the Federal Energy Act and Federal Electricity Supply Act. A Physical Power Purchase Agreement typically includes detailed provisions for delivery specifications, metering arrangements, grid access, pricing mechanisms, and regulatory compliance requirements. It's particularly important in contexts involving renewable energy projects, industrial power supply, or utility-scale electricity procurement within the Swiss market.
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1. Parties: Identification of the seller (generator) and buyer, including full legal names and addresses
2. Background: Context of the agreement, including facility description and purpose of the PPA
3. Definitions and Interpretation: Detailed definitions of technical and commercial terms used in the agreement
4. Sale and Purchase Obligations: Core obligations including delivery points, voltage requirements, and minimum/maximum volumes
5. Term and Termination: Duration of the agreement, conditions for extension, and termination rights
6. Delivery Specifications: Technical specifications for power delivery, including grid connection requirements
7. Metering and Documentation: Requirements for measuring and recording electricity delivery
8. Price and Payment Terms: Pricing structure, invoicing, and payment procedures
9. Performance Security: Security requirements, including any guarantees or credit support
10. Force Majeure: Definition and consequences of force majeure events
11. Representations and Warranties: Standard and specific warranties regarding capacity, licenses, and compliance
12. Grid Connection and Access: Responsibilities for grid connection and compliance with grid requirements
13. Compliance with Laws: Obligations to comply with Swiss energy regulations and other applicable laws
14. Dispute Resolution: Procedures for resolving disputes under Swiss law
15. Governing Law: Confirmation of Swiss law as governing law and jurisdiction
1. Renewable Energy Certificates: Required if the power is from renewable sources and certificates are being traded
2. Sustainability Requirements: Include if there are specific environmental or sustainability obligations
3. Construction and Commissioning: Required for new facilities not yet operational
4. Insurance: Detailed insurance requirements if not covered in general terms
5. Change in Law: Specific provisions for handling regulatory changes in the Swiss energy market
6. Trading and Resale Rights: Include if buyer has rights to resell the purchased power
7. Curtailment: Required for arrangements where production might need to be reduced
8. Credit Rating Requirements: Include for agreements with specific creditworthiness requirements
1. Facility Technical Specifications: Detailed technical description of the generation facility
2. Testing and Commissioning Procedures: Procedures for facility testing and commissioning
3. Metering Specifications: Technical requirements for metering equipment and procedures
4. Operating Parameters: Detailed operating specifications and requirements
5. Pricing Mechanism and Calculations: Detailed pricing formulas and adjustment mechanisms
6. Form of Performance Security: Template for any required performance security or guarantees
7. Grid Connection Details: Technical specifications for grid connection
8. Contact Details and Notices: List of key contacts and notice requirements
9. Form of Direct Agreement: Template for direct agreements with financiers if required
10. Production Forecasting Requirements: Procedures and requirements for production forecasting
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