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An Energy Purchase Agreement spells out how a power producer will sell electricity to a buyer over the long term. These contracts are crucial in India's renewable energy sector, especially for solar and wind projects that need stable revenue to attract investors.

Under India's Electricity Act 2003, these agreements lock in key details like pricing, delivery schedules, and payment terms - typically for 15-25 years. They help private developers secure funding while giving power distribution companies (DISCOMs) a reliable energy supply at predictable rates. The Central Electricity Regulatory Commission oversees these contracts to ensure fair terms for all parties.

Use an Energy Purchase Agreement when setting up large-scale power generation projects, especially renewable energy installations like solar farms or wind parks. These agreements become essential before construction begins, as banks and investors typically require them to finance the project.

The agreement proves particularly valuable for independent power producers selling to state DISCOMs, or industrial consumers seeking dedicated power supply. It's crucial to have it in place during the project planning phase, as Indian regulations require clear documentation of power sale arrangements before granting key permits and grid connection approvals.

• Power Purchase Contract: Standard agreement between power producers and utilities, covering basic electricity supply terms and conditions
• PPA Agreement Solar: Specialized for solar projects, including specific technical parameters and renewable energy incentives
• Virtual Power Purchase Agreement: Financial settlement structure without physical power delivery, popular among corporate buyers
• Third Party Solar Power Purchase Agreement: Involves developer installing solar on customer premises with no upfront cost
• Net Metering Credit Agreement: Covers excess power fed back to grid, following state net metering regulations

• Independent Power Producers: Generate and sell electricity through these agreements, often operating renewable energy plants like solar or wind farms
• State DISCOMs: Purchase power in bulk to distribute to consumers, representing the primary buyers in most Energy Purchase Agreements
• Corporate Consumers: Large industrial users who directly purchase power for their facilities through group captive or open access arrangements
• Legal Teams: Draft and negotiate agreement terms, ensuring compliance with electricity regulations and CERC guidelines
• Financial Institutions: Review agreements as part of project financing, often requiring specific terms to secure loans
• Regulatory Bodies: Oversee and approve agreements, including state electricity regulatory commissions and CERC

• Project Details: Gather technical specifications including plant capacity, technology type, and expected generation patterns
• Regulatory Clearances: Confirm necessary permits, licenses, and grid connectivity approvals are in place
• Pricing Structure: Determine tariff rates, payment terms, and any escalation clauses aligned with CERC guidelines
• Delivery Points: Identify exact interconnection points and metering arrangements for power transfer
• Performance Standards: Define minimum generation guarantees, availability requirements, and quality parameters
• Risk Allocation: Map out force majeure events, change in law provisions, and termination conditions
• Documentation: Use our platform to generate a customized agreement that includes all mandatory elements and local requirements

• Party Details: Complete legal names, registration numbers, and authorized signatories of both generator and purchaser
• Supply Terms: Specified capacity, delivery points, and scheduling requirements per grid code
• Tariff Structure: Detailed pricing mechanism, payment terms, and billing procedures
• Performance Standards: Minimum generation guarantees and grid compliance requirements
• Default Provisions: Events of default, cure periods, and termination rights
• Force Majeure: Specific events and relief mechanisms as per Indian contract law
• Dispute Resolution: Arbitration procedure following Electricity Act 2003
• Change in Law: Impact on tariff and obligations under regulatory changes

Energy Purchase Agreements often get confused with Asset Purchase Agreements, especially in power sector transactions. While both involve significant financial commitments, they serve distinctly different purposes in India's energy market.

• Transaction Nature: Energy Purchase Agreements focus on ongoing electricity supply and pricing, while Asset Purchase Agreements deal with one-time transfers of power plant ownership or equipment
• Duration: EPAs typically run 15-25 years with regular payments, whereas Asset Purchase Agreements conclude once the asset transfer is complete
• Regulatory Oversight: EPAs require electricity regulatory commission approval and must comply with grid codes; Asset Purchase Agreements mainly follow corporate and property laws
• Risk Structure: EPAs distribute operational and performance risks over time, while Asset Purchase Agreements focus on transfer risks and warranties
• Payment Terms: EPAs use tariff-based periodic payments, whereas Asset Purchase Agreements involve lump-sum or structured purchase payments