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Corporate Power Purchase Agreement for the United Kingdom

Corporate Power Purchase Agreement Template for England and Wales

A Corporate Power Purchase Agreement under English and Welsh law is a long-term contract between a renewable energy generator and a corporate buyer for the purchase of electricity and associated environmental attributes. The agreement defines the commercial terms for electricity sale and purchase, including volume, price, delivery point, and term. It incorporates specific requirements of the UK energy regulatory framework, including compliance with Ofgem regulations and the Renewables Obligation scheme.

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What is a Corporate Power Purchase Agreement?

Corporate Power Purchase Agreements have become increasingly important as organizations seek to meet sustainability goals and secure long-term renewable energy supply. Under English and Welsh law, these agreements provide a framework for direct procurement of renewable electricity, typically spanning 10-15 years. They address key commercial and operational aspects including pricing mechanisms, delivery obligations, environmental attributes, and risk allocation. The agreement must comply with UK energy regulations while providing certainty for both generators seeking project finance and corporate buyers pursuing clean energy targets.

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

1. 1. Parties: Identification and details of the power generator and corporate buyer

2. 2. Background/Recitals: Context of the agreement, including facility details and parties' objectives

3. 3. Definitions and Interpretation: Key terms and interpretation rules used throughout the agreement

4. 4. Sale and Purchase Obligations: Core obligations regarding electricity sale, purchase, and delivery

5. 5. Term and Termination: Duration of agreement and termination circumstances

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

7. 7. Metering and Records: Requirements for measuring and recording electricity delivery

8. 8. Force Majeure: Circumstances excusing performance and related procedures

9. 9. Representations and Warranties: Standard legal assurances from both parties

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

1. Environmental Attributes: Treatment of renewable energy certificates and credits - used when renewable energy attributes are being transferred

2. Development and Construction: Obligations regarding facility construction - used for new facilities not yet operational

3. Credit Support: Financial security requirements - used when credit risk mitigation is required

4. Change in Law: Procedures for addressing regulatory changes - used for longer-term agreements

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

1. Schedule 1 - Facility Description: Technical details of the generating facility

2. Schedule 2 - Pricing Schedule: Detailed pricing mechanisms and calculations

3. Schedule 3 - Operating Parameters: Technical operating requirements and procedures

4. Schedule 4 - Form of Direct Agreement: Standard form for lender direct agreements

5. Schedule 5 - Metering Specifications: Technical requirements for metering equipment

6. Schedule 6 - Performance Security: Forms of required security instruments

7. Schedule 7 - Insurance Requirements: Required insurance coverage details

8. Schedule 8 - Generation Forecasting: Procedures for forecasting generation output

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

Jurisdiction

England and Wales

Cost

Free to use

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