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Physical Power Purchase Agreement Template for Denmark

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Key Requirements PROMPT example:

Physical Power Purchase Agreement

I need a Physical Power Purchase Agreement under Danish law for a 50MW onshore wind farm in Jutland, with delivery starting March 2025 to a large industrial consumer, including provisions for green certificates and direct line connection.

What is a Physical Power Purchase Agreement?

The Physical Power Purchase Agreement (PPA) is essential for parties seeking to establish a direct power supply arrangement in the Danish electricity market. This document is typically used when a power generator (often a renewable energy facility) wishes to sell electricity directly to an end-user or utility, with physical delivery through the Danish grid system. The agreement needs to comply with Danish energy law, including the Electricity Supply Act (Elforsyningsloven) and regulations set by Energinet.dk, while also adhering to EU energy market rules. It includes detailed provisions for physical delivery, grid connection, balancing responsibilities, and metering arrangements, making it particularly relevant for renewable energy projects and corporate buyers seeking to secure long-term power supply. The document addresses specific Danish market characteristics such as the Nord Pool power market integration and green certificate mechanisms.

What sections should be included in a Physical Power Purchase Agreement?

1. Parties: Identification of the seller (generator) and buyer, including full legal names and registration details

2. Background: Context of the agreement, including facility details and parties' intentions

3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents

4. Sale and Purchase Obligations: Core obligations including delivery point, contract quantity, and exclusivity provisions

5. Term and Conditions Precedent: Duration, commencement date, and conditions that must be met before the agreement becomes effective

6. Delivery Specifications: Technical requirements, delivery point, grid connection, and metering arrangements

7. Price and Payment: Price structure, payment terms, invoicing, and payment security

8. Metering and Communications: Metering requirements, communications protocols, and data sharing

9. Balancing and Scheduling: Responsibilities for energy balancing and scheduling nominations

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

11. Change in Law: Provisions dealing with regulatory changes affecting the agreement

12. Default and Termination: Events of default, remedies, and termination rights

13. Liability and Indemnities: Allocation of risks and limitation of liability

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

15. Confidentiality: Protection of confidential information and permitted disclosures

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

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

What sections are optional to include in a Physical Power Purchase Agreement?

1. Construction and Commissioning: Required if the generating facility is not yet operational, covering construction milestones and commissioning procedures

2. Green Certificates and Environmental Attributes: Required if the parties are trading environmental attributes or certificates separately from the power

3. Multiple Delivery Points: Required if power can be delivered at different grid connection points

4. Battery Storage: Required if the facility includes energy storage capabilities

5. Market Premium Arrangements: Required if the project receives Danish market premium support

6. Direct Line Arrangements: Required if power is delivered through a direct line rather than the public grid

7. Forecasting and Production Estimates: Detailed requirements for production forecasting, particularly relevant for wind or solar facilities

8. Grid Connection Cost Sharing: Required if parties share grid connection or upgrade costs

What schedules should be included in a Physical Power Purchase Agreement?

1. Facility Description: Technical specifications of the generating facility

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

3. Operating Parameters: Technical and operational requirements including ramp rates and availability

4. Metering Specifications: Technical requirements for metering equipment and procedures

5. Price Calculation: Detailed pricing formula and adjustment mechanisms

6. Communications Protocol: Procedures for operational communications and notifications

7. Form of Performance Security: Template for any required performance security or guarantees

8. Grid Connection Details: Technical specifications of grid connection and related requirements

9. Production Forecasting Requirements: Detailed procedures for production forecasting and reporting

10. Form of Direct Agreement: Template for direct agreement with lenders if required

11. Maintenance Schedule: Planned maintenance periods and procedures

12. Insurance Requirements: Required insurance coverage and terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 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

Renewable Energy

Utilities

Manufacturing

Data Centers

Industrial Production

Agriculture

Food and Beverage

Retail

Commercial Real Estate

Mining

Chemical Industry

Pharmaceutical

Relevant Teams

Legal

Energy Trading

Commercial

Operations

Risk Management

Regulatory Affairs

Finance

Procurement

Sustainability

Business Development

Technical Operations

Grid Operations

Compliance

Relevant Roles

Energy Trading Manager

Power Purchase Manager

Legal Counsel

Energy Risk Manager

Commercial Director

Sustainability Manager

Technical Operations Manager

Grid Connection Specialist

Regulatory Compliance Officer

Chief Financial Officer

Procurement Manager

Business Development Manager

Energy Portfolio Manager

Project Development Manager

Contract 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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