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Power Sale Agreement

Power Sale Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Power Sale Agreement

"I need a Power Sale Agreement for a 50MW solar plant in Dubai, with DEWA as the off-taker, planned commercial operation date in March 2025, including specific provisions for renewable energy credits and environmental attributes."

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Document background
The Power Sale Agreement serves as the primary commercial contract between power generators and purchasers in the United Arab Emirates, establishing the fundamental terms and conditions for power supply arrangements. This document is essential for any power generation project, whether conventional or renewable, and must comply with both federal UAE legislation and emirate-specific regulations. It typically includes detailed provisions for power delivery specifications, pricing mechanisms, operational requirements, and technical standards. The agreement is particularly crucial for independent power producers (IPPs), utility companies, and large industrial consumers, incorporating necessary provisions for UAE regulatory compliance, including environmental standards and technical requirements set by authorities such as DEWA or DoE. The document structure reflects specific UAE market practices and regulatory requirements while ensuring bankability for project finance purposes.
Suggested Sections

1. Parties: Identification of the power seller and purchaser, including full legal names and registration details

2. Background: Context of the agreement, including facility details and purpose of the power sale arrangement

3. Definitions and Interpretation: Definitions of technical and legal terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of power, including minimum take-or-pay provisions

5. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

6. Delivery Point and Title: Specification of the delivery point and transfer of title/risk

7. Metering and Testing: Requirements for power metering, testing procedures, and dispute resolution for measurements

8. Pricing and Payment: Price structure, payment terms, invoicing requirements, and payment security

9. Operating Requirements: Technical and operational standards, maintenance requirements

10. Force Majeure: Definition of force majeure events and consequences

11. Representations and Warranties: Standard and specific warranties from both parties

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Insurance: Required insurance coverage for both parties

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

15. Confidentiality: Protection of confidential information

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Change in Law: Provisions dealing with regulatory changes - include if operating in rapidly evolving regulatory environment

2. Environmental Credits: Provisions regarding renewable energy credits or certificates - include for renewable power facilities

3. Grid Connection: Provisions regarding grid connection responsibilities - include if grid connection is not covered in separate agreement

4. Performance Security: Requirements for performance bonds or guarantees - include for large-scale agreements

5. Step-in Rights: Lender's step-in rights - include if project financing is involved

6. Local Content: Local content requirements - include if required by UAE regulations

7. Capacity Payments: Separate capacity payment structure - include for capacity-based agreements

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical specifications of the power facility and delivery requirements

2. Schedule 2 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning

3. Schedule 3 - Pricing Formula and Calculations: Detailed pricing mechanisms, including any adjustments and indexation

4. Schedule 4 - Operating Parameters: Specific operating requirements, including minimum and maximum output

5. Schedule 5 - Metering Specifications: Technical specifications for metering equipment and procedures

6. Schedule 6 - Form of Performance Security: Template for performance security documents

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage

8. Schedule 8 - Interconnection Requirements: Technical requirements for grid interconnection

9. Appendix A - Site Description: Detailed description and maps of the facility site

10. Appendix B - Permits and Authorizations: List of required permits and regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






































































Clauses








































Relevant Industries

Energy & Utilities

Infrastructure

Industrial Manufacturing

Real Estate Development

Renewable Energy

Oil & Gas

Construction

Environmental Services

Financial Services

Relevant Teams

Legal

Operations

Commercial

Regulatory Affairs

Technical Operations

Risk Management

Finance

Project Development

Environmental Compliance

Grid Operations

Trading

Procurement

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Power Plant Manager

Energy Trading Director

Commercial Director

Legal Counsel

Regulatory Compliance Manager

Technical Operations Manager

Risk Manager

Finance Director

Project Development Manager

Contract Manager

Environmental Compliance Officer

Grid Connection Manager

Power Purchase Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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