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Contract For Differences PPA Template for Canada

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Key Requirements PROMPT example:

Contract For Differences PPA

"I need a Contract for Differences PPA for a 50MW solar facility in Ontario, with commercial operations starting March 2025, including provisions for environmental attributes and battery storage capabilities."

Document background
The Contract for Differences PPA is specifically designed for the Canadian energy market where parties seek to establish long-term power purchase arrangements with price certainty. This document type is particularly relevant when generators need revenue stability and offtakers want to hedge against market price volatility. The agreement addresses both physical power delivery and financial settlement aspects, making it suitable for various types of power generation facilities, including renewable energy projects. The document incorporates Canadian federal energy regulations and provincial-specific requirements, ensuring compliance with local market rules and regulatory frameworks. The Contract for Differences PPA structure is particularly valuable for project financing as it provides bankable revenue streams while accommodating market-based trading mechanisms.
Suggested Sections

1. Parties: Identification of the Generator/Seller and Offtaker/Buyer, including full legal names and addresses

2. Background: Context of the agreement, including facility details and purpose of the CfD structure

3. Definitions: Comprehensive definitions including Market Reference Price, Strike Price, Settlement Periods, and other key terms

4. Term and Conditions Precedent: Duration of agreement and conditions that must be met before the agreement becomes effective

5. Sale and Purchase Obligations: Core obligations regarding electricity generation and supply

6. CfD Settlement Mechanism: Detailed explanation of how the contract for differences payments are calculated and settled

7. Metering and Reporting: Requirements for measuring and reporting electricity generation

8. Billing and Payment: Payment terms, invoicing procedures, and settlement periods

9. Performance Security: Credit support and security requirements

10. Force Majeure: Events excusing performance and associated procedures

11. Default and Termination: Events of default, cure periods, and termination rights

12. Dispute Resolution: Procedures for resolving disputes between parties

13. Representations and Warranties: Standard and specific representations by both parties

14. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

Optional Sections

1. Change in Law: Provisions addressing regulatory changes affecting the CfD structure, used in jurisdictions with evolving energy regulations

2. Environmental Attributes: Treatment of renewable energy credits or certificates, included when dealing with renewable energy facilities

3. Market Disruption: Procedures for handling market disruption events, important in volatile markets

4. Refinancing Provisions: Terms regarding refinancing rights and obligations, included for project-financed facilities

5. Carbon Credits: Allocation of carbon credits or similar environmental benefits, relevant for jurisdictions with carbon pricing

6. Capacity Markets: Provisions related to capacity market participation, relevant where capacity markets exist

7. Insurance: Specific insurance requirements, included based on project size and risk profile

Suggested Schedules

1. Facility Description: Technical specifications of the generating facility

2. Price and Payment: Detailed pricing mechanism, including Strike Price calculation and adjustment

3. Settlement Calculations: Detailed methodology for CfD settlements and worked examples

4. Operating Parameters: Technical operating requirements and parameters

5. Metering Specifications: Detailed metering requirements and procedures

6. Form of Performance Security: Template for required security instruments

7. Planned Maintenance Schedule: Schedule of planned maintenance periods

8. Communication Protocols: Procedures for operational communications

9. Form of Direct Agreement: Template agreement for lender rights

10. Commissioning Tests: Required testing procedures and acceptance criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































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Relevant Industries

Energy & Utilities

Renewable Energy

Power Generation

Financial Services

Infrastructure

Industrial Manufacturing

Mining

Commercial Real Estate

Data Centers

Relevant Teams

Legal

Commercial

Risk Management

Finance

Energy Trading

Sustainability

Operations

Regulatory Affairs

Treasury

Business Development

Relevant Roles

Energy Trading Manager

Power Purchase Agreement Manager

Legal Counsel

Commercial Manager

Risk Manager

Chief Financial Officer

Energy Procurement Manager

Sustainability Director

Project Finance Manager

Operations Director

Regulatory Compliance Officer

Business Development Manager

Portfolio Manager

Energy Assets 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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