Commercial Power Purchase Agreements are essential instruments in the UK energy market, particularly for organizations seeking to secure long-term electricity supply and manage energy costs. These agreements, governed by English and Welsh law, establish the commercial and technical framework for selling and purchasing electricity directly between generators and corporate buyers. The document typically includes detailed provisions on pricing, volume commitments, delivery points, and compliance with regulatory requirements. PPAs are particularly relevant in the context of renewable energy projects and corporate sustainability initiatives.
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1. Parties: Identification and details of the power generator and purchaser
2. Background: Context of the agreement, including facility details and purpose
3. Definitions: Key terms used throughout the agreement including regulatory and technical terminology
4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase, including delivery points and volume commitments
5. Pricing and Payment: Price calculation methodology, invoicing procedures, and payment terms
6. Term and Termination: Duration of agreement, renewal options, and termination rights and procedures
7. Metering and Reporting: Requirements for measuring and reporting electricity delivery and consumption
8. Force Majeure: Provisions dealing with events beyond parties' reasonable control
9. Governing Law and Disputes: Application of English and Welsh law and dispute resolution procedures
1. Green Certificates: Provisions for handling REGOs and other environmental attributes when renewable energy sources are involved
2. Change in Law: Provisions addressing regulatory changes and their impact on the agreement
3. Credit Support: Financial security requirements and credit protection mechanisms
4. Capacity Market: Provisions relating to capacity market participation and revenue sharing
5. Grid Connection: Specific provisions relating to grid connection and compliance requirements
1. Schedule 1 - Facility Description: Technical specifications and details of the generation facility
2. Schedule 2 - Pricing Mechanism: Detailed price calculations, adjustments, and worked examples
3. Schedule 3 - Operating Parameters: Technical specifications, operating procedures, and performance requirements
4. Schedule 4 - Metering Specifications: Technical requirements for metering equipment and data collection
5. Schedule 5 - Form of Performance Security: Template for guarantees, letters of credit, or other security instruments
6. Schedule 6 - Communications Protocol: Procedures for operational communications and notifications
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