The Power Sale Agreement is a crucial document in South Africa's energy sector, used to formalize the commercial and technical arrangements between power generators/suppliers and purchasers. This agreement becomes particularly important in the context of South Africa's evolving energy market, where independent power production is increasingly significant alongside the traditional utility model. The document addresses specific challenges in the South African context, including load shedding considerations, grid stability requirements, and compliance with NERSA regulations. It includes detailed provisions for power supply specifications, pricing structures, technical requirements, and operational procedures, all aligned with South African electricity regulations and market conditions. The agreement is essential for both private and public sector entities engaging in power purchase transactions, whether for industrial, commercial, or municipal use.
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1. Parties: Identification of the power supplier and purchaser, including registration details and addresses
2. Background: Context of the agreement, including supplier's generation capacity and purchaser's requirements
3. Definitions and Interpretation: Definitions of technical terms, industry-specific terminology, and interpretation rules
4. Supply Obligations: Core obligations regarding power supply, including quantity, availability, and quality specifications
5. Connection and Delivery Point: Specifications of where and how power will be delivered and connection responsibilities
6. Metering and Measurement: Requirements for measuring supplied power, meter specifications, and reading procedures
7. Pricing and Payment: Tariff structure, payment terms, invoicing, and payment dispute procedures
8. Technical Requirements: Compliance with Grid Code and technical standards
9. Operation and Maintenance: Responsibilities for maintaining relevant infrastructure and operational procedures
10. Force Majeure: Events excusing performance, including grid failures and natural disasters
11. Term and Termination: Duration of agreement, renewal options, and termination rights
12. Dispute Resolution: Procedures for resolving disputes, including NERSA involvement if required
13. Confidentiality: Protection of confidential information and trade secrets
14. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Renewable Energy Provisions: Specific provisions for renewable energy sources, including environmental attributes and certificates
2. Backup Power Arrangements: Requirements for backup power supply during outages or maintenance
3. Carbon Credits: Allocation and trading of carbon credits or environmental attributes
4. Load Shedding Management: Procedures and responsibilities during load shedding events
5. Wheeling Arrangements: Terms for power wheeling through third-party networks
6. Black Start Capabilities: Requirements for system restoration after complete shutdown
7. Energy Storage: Provisions for energy storage systems and their operation
1. Schedule 1 - Technical Specifications: Detailed technical requirements, including power quality parameters
2. Schedule 2 - Pricing Formula: Detailed pricing calculations, including adjustment mechanisms
3. Schedule 3 - Performance Standards: Required performance levels and measurement criteria
4. Schedule 4 - Connection Facilities: Specifications of connection points and related infrastructure
5. Schedule 5 - Metering Specifications: Technical requirements for metering equipment and procedures
6. Schedule 6 - Operating Procedures: Detailed operational procedures and protocols
7. Schedule 7 - Testing and Commissioning: Procedures for initial and periodic testing
8. Appendix A - Single Line Diagram: Technical diagram showing electrical connection arrangement
9. Appendix B - Site Layout: Diagrams and descriptions of relevant facilities
10. Appendix C - Emergency Contacts: List of emergency contacts and escalation procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Energy and Utilities
Manufacturing
Mining
Industrial Processing
Commercial Real Estate
Data Centers
Telecommunications
Agriculture
Healthcare
Retail
Education
Municipal Services
Relevant Teams
Legal
Operations
Procurement
Finance
Engineering
Compliance
Risk Management
Facilities Management
Energy Management
Commercial
Technical Operations
Regulatory Affairs
Sustainability
Contract Management
Relevant Roles
Energy Manager
Legal Counsel
Commercial Director
Procurement Manager
Operations Director
Technical Manager
Compliance Officer
Risk Manager
Chief Financial Officer
Facilities Manager
Engineering Manager
Sustainability Manager
Contract Manager
Power Plant Manager
Energy Trading Manager
Regulatory Affairs Manager
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