The Power Purchase Contract is a fundamental agreement used in Hong Kong's energy sector to establish a long-term arrangement between electricity generators and buyers. This document is essential when organizations need to secure a reliable power supply or when power producers seek to ensure a stable revenue stream from their generation assets. The agreement must comply with Hong Kong's regulatory framework, particularly the Electricity Ordinance and Scheme of Control Agreements, while addressing commercial, technical, and operational aspects of power supply. It's commonly used in various scenarios including renewable energy projects, industrial power supply arrangements, and infrastructure developments, incorporating specific provisions for Hong Kong's unique energy market structure and environmental requirements.
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1. Parties: Identification of the power producer/seller and the power purchaser/buyer
2. Background: Context of the agreement, including facility details and purpose of the arrangement
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including minimum purchase commitments
5. Term and Termination: Duration of the agreement, renewal provisions, and termination circumstances
6. Price and Payment: Pricing structure, payment terms, billing procedures, and dispute mechanisms
7. Metering and Testing: Requirements for measuring electricity delivery and quality testing procedures
8. Delivery Points and Title: Specification of delivery points and transfer of title/risk
9. Performance Standards: Required technical standards, availability requirements, and performance guarantees
10. Operation and Maintenance: Obligations regarding facility operation and maintenance
11. Force Majeure: Definition and consequences of force majeure events
12. Representations and Warranties: Standard and specific warranties from both parties
13. Insurance: Required insurance coverage for both parties
14. Dispute Resolution: Procedures for resolving disputes, including governing law and jurisdiction
15. Confidentiality: Protection of confidential information and trade secrets
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Environmental Attributes: Used when dealing with renewable energy certificates or carbon credits
2. Grid Connection: Include when the agreement needs to address grid connection responsibilities and costs
3. Storage Facilities: Required when the agreement includes energy storage components
4. Interconnection: Used when specific interconnection arrangements need to be detailed
5. Change in Law: Include when regulatory changes might significantly impact the agreement
6. Development and Construction: Required for facilities not yet constructed at agreement signing
7. Step-in Rights: Include when lenders require step-in rights provisions
8. Local Content Requirements: Used when local content or employment requirements apply
1. Technical Specifications: Detailed technical parameters of the generating facility
2. Testing Procedures: Specific procedures for testing and commissioning
3. Pricing Formula: Detailed pricing calculations and adjustment mechanisms
4. Performance Standards: Detailed performance requirements and measurement methods
5. Operating Procedures: Day-to-day operational procedures and requirements
6. Metering Specifications: Technical requirements for metering equipment and procedures
7. Form of Performance Security: Template for performance bonds or other security instruments
8. Insurance Requirements: Detailed insurance coverage requirements
9. Interconnection Details: Technical specifications for grid interconnection
10. Emergency Procedures: Procedures for handling emergency situations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Energy & Utilities
Manufacturing
Industrial
Real Estate & Construction
Data Centers
Renewable Energy
Infrastructure
Technology
Mining
Healthcare
Relevant Teams
Legal
Operations
Procurement
Finance
Risk Management
Environmental Compliance
Technical Operations
Facilities Management
Project Management
Commercial
Sustainability
Energy Trading
Regulatory Affairs
Relevant Roles
Chief Executive Officer
Chief Financial Officer
General Counsel
Energy Procurement Manager
Power Plant Manager
Facilities Manager
Environmental Compliance Officer
Risk Manager
Commercial Director
Technical Director
Operations Manager
Project Manager
Legal Counsel
Sustainability Manager
Energy Trading Manager
Contract Administrator
Chief Technical Officer
Chief Operating Officer
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