The Power Sale Agreement (PSA) is a fundamental document in the German energy market, used to formalize the commercial relationship between power producers and purchasers. It is particularly relevant in the context of Germany's energy transition (Energiewende) and the increasingly decentralized power market. The agreement needs to comply with German energy law, particularly the Energiewirtschaftsgesetz (EnWG) and, where applicable, the Renewable Energy Sources Act (EEG). This document type is essential for various scenarios, including direct power purchase from conventional or renewable generators, industrial supply contracts, and energy trading arrangements. The PSA includes detailed provisions on delivery points, volume commitments, pricing mechanisms, grid access, balancing responsibilities, and technical specifications, all aligned with German regulatory requirements and market practices.
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1. Parties: Identification of the power seller and purchaser, including full legal names and addresses
2. Background: Context of the agreement, including facility description and purpose of the power sale arrangement
3. Definitions: Defined terms used throughout the agreement, including technical and commercial terms
4. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of power, including delivery points and exclusivity provisions
5. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights
6. Delivery Specifications: Technical requirements for power delivery, including voltage levels and connection points
7. Metering and Documentation: Requirements for measuring delivered power and maintaining records
8. Price and Payment Terms: Pricing structure, billing procedures, and payment terms
9. Grid Access and Compliance: Responsibilities for grid connection and compliance with grid operator requirements
10. Force Majeure: Events excusing performance and procedures for handling force majeure situations
11. Warranties and Representations: Standard and specific warranties from both parties
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. Confidentiality: Protection of confidential information and trade secrets
15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment
1. Direct Marketing Arrangements: Required when the power is from renewable sources and sold under Germany's direct marketing scheme
2. Balancing Group Management: Included when specific arrangements for balancing group registration and management are needed
3. Carbon Credits and Certificates: Required when dealing with renewable energy certificates or emissions trading
4. Construction and Commissioning: Included for new facilities not yet operational
5. Performance Guarantees: Required when specific power availability or quality guarantees are needed
6. Insurance: Detailed insurance requirements, if beyond standard coverage expectations
7. Step-in Rights: Included when lenders require direct step-in rights
8. Change in Law: Detailed provisions for handling regulatory changes, particularly relevant for long-term agreements
1. Technical Specifications: Detailed technical parameters of the power supply and delivery points
2. Pricing Formula: Detailed pricing calculations, including any adjustments or indexation
3. Testing and Commissioning Procedures: Procedures for initial and ongoing performance testing
4. Metering Specifications: Technical requirements for metering equipment and procedures
5. Operating Procedures: Detailed procedures for day-to-day operations and communications
6. Form of Direct Marketing Agreement: Standard form if direct marketing arrangement is included
7. Performance Security: Forms of any required performance bonds or guarantees
8. Grid Connection Details: Technical specifications of grid connection and compliance requirements
9. Contact Details: List of key contacts and authorized representatives for both parties
Relevant legal definitions
Clauses
Relevant Industries
Energy & Utilities
Renewable Energy
Manufacturing
Heavy Industry
Chemical Industry
Data Centers
Mining
Automotive
Steel Production
Agriculture
Relevant Teams
Legal
Commercial
Energy Trading
Regulatory Affairs
Operations
Risk Management
Finance
Technical Operations
Business Development
Procurement
Compliance
Corporate Strategy
Relevant Roles
Energy Trading Manager
Power Plant Manager
Legal Counsel
Regulatory Compliance Officer
Commercial Director
Energy Procurement Manager
Technical Operations Manager
Grid Connection Specialist
Risk Manager
Business Development Manager
Energy Market Analyst
Contract Manager
Chief Financial Officer
Energy Trading Analyst
Sustainability Manager
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