The Power Sales Agreement is a fundamental document in energy trading and supply arrangements under English and Welsh jurisdiction. It is typically used when establishing long-term power purchase arrangements between generators and buyers, whether in conventional or renewable energy sectors. The agreement addresses crucial aspects including pricing mechanisms, delivery obligations, technical specifications, and regulatory compliance requirements. This document is particularly important in the context of the UK's evolving energy market structure and increasing focus on renewable energy integration.
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1. Parties: Identification and details of the power seller and buyer
2. Background: Context of the agreement, including facility details and purpose
3. Definitions: Key terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding power sale and purchase, including quantity and specifications
5. Price and Payment Terms: Pricing structure, invoicing, and payment mechanisms
6. Term and Termination: Duration of agreement and termination provisions
7. Metering and Recording: Requirements for measuring and recording power delivery
8. Force Majeure: Events excusing performance and related procedures
1. Credit Support: Financial security requirements and procedures for when dealing with new or financially uncertain counterparties
2. Trading and Nominations: Procedures for power trading and nominations when agreement involves market trading
3. Green Certificates: Provisions regarding renewable energy certificates for agreements involving renewable energy sources
1. Technical Specifications: Detailed technical requirements for power delivery
2. Pricing Formula: Detailed calculation methodology for power prices
3. Facility Description: Technical details of the generation facility
4. Operating Procedures: Detailed procedures for day-to-day operations
5. Form of Performance Security: Template for any required performance bonds or guarantees
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