Document background
The Contract For Differences PPA is a specialized agreement used in the UAE's evolving energy market to facilitate power generation projects while managing price volatility. This document type is particularly relevant for renewable energy projects and independent power producers operating under the UAE's energy regulatory framework. The agreement establishes a mechanism where a generator sells electricity into the market but receives a guaranteed price through a contract-for-differences structure, with the counterparty paying the difference when market prices are low and receiving the surplus when market prices are high. The document must comply with UAE federal laws, relevant emirate-level regulations, and often needs to accommodate Islamic finance principles. It typically includes comprehensive technical specifications, performance standards, and detailed payment mechanisms suitable for project finance requirements.
