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Direct Power Purchase Agreement
"I need a Direct Power Purchase Agreement under Belgian law for a 15-year term starting March 2025, between our manufacturing company and a solar power producer in Flanders, with an annual purchase commitment of 50,000 MWh and provisions for green certificates transfer."
1. Parties: Identification of the power producer/seller and the corporate buyer/offtaker, including full legal names and registration details
2. Background: Context of the agreement, including facility details, purpose of the PPA, and relevant regulatory framework
3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including volume commitments
5. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights
6. Delivery Point and Title Transfer: Specification of where electricity will be delivered and when title passes
7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records
8. Price and Payment Terms: Pricing structure, payment mechanics, invoicing, and payment security
9. Force Majeure: Definition and consequences of force majeure events
10. Change in Law: Provisions addressing regulatory changes affecting the agreement
11. Representations and Warranties: Standard and specific warranties from both parties
12. Governing Law and Dispute Resolution: Belgian law provisions and dispute resolution mechanisms
1. Green Certificates and Environmental Attributes: Required if the PPA includes transfer of environmental benefits or certificates
2. Grid Connection and Curtailment: Needed if the buyer has specific responsibilities regarding grid connection or curtailment risks
3. Construction and Commissioning: Required for PPAs signed before facility construction is complete
4. Credit Support: Include if parties require parent company guarantees or other credit support
5. Insurance: Detailed insurance requirements if not covered in general representations
6. Trading and Balancing Responsibility: Required if agreement includes specific provisions about balancing responsibilities
7. Change of Control: Include if parties want specific rights regarding ownership changes
8. Forecasting and Scheduling: Required for variable renewable energy sources
1. Facility Description: Technical specifications of the generation facility
2. Pricing Mechanism: Detailed pricing calculations, adjustments, and examples
3. Operating Parameters: Technical parameters, including capacity, availability, and maintenance schedules
4. Metering Specifications: Technical requirements for metering equipment and procedures
5. Form of Direct Agreement: Standard form for direct agreements with lenders if required
6. Performance Security: Forms of required performance security or guarantees
7. Contact Details: Key contacts and notice information for both parties
8. Grid Connection Details: Technical specifications of grid connection arrangements
9. Commissioning Tests: Required tests and procedures for facility commissioning
10. Calculation of Liquidated Damages: Formulas and examples for calculating various liquidated damages
Authors
Energy & Utilities
Renewable Energy
Manufacturing
Technology
Industrial
Real Estate
Data Centers
Retail
Food & Beverage
Telecommunications
Financial Services
Pharmaceuticals
Chemical Industry
Legal
Procurement
Finance
Operations
Sustainability
Risk Management
Facilities Management
Environmental Compliance
Energy Trading
Corporate Strategy
Technical Operations
Chief Executive Officer
Chief Financial Officer
Energy Manager
Sustainability Director
Procurement Manager
Legal Counsel
Risk Manager
Operations Director
Facilities Manager
Environmental Compliance Officer
Power Trading Manager
Contract Manager
Technical Director
Project Manager
Corporate Strategy Director
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