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Direct Power Purchase Agreement
"I need a Direct Power Purchase Agreement for a 50MW solar power facility in Jakarta, Indonesia, supplying electricity to our manufacturing plant, with commercial operations starting March 2025 and including provisions for carbon credits and renewable energy certificates."
1. Parties: Identification of the power producer and the purchaser, including their legal details and authorized representatives
2. Background: Context of the agreement, including project overview and parties' intentions
3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement
4. Term and Conditions Precedent: Duration of the agreement and conditions that must be satisfied before the agreement becomes effective
5. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including minimum take-or-pay obligations
6. Delivery Point and Title: Specification of where electricity will be delivered and when title passes
7. Metering and Testing: Requirements for measuring electricity delivery and testing procedures
8. Price and Payment: Electricity pricing structure, payment terms, and invoicing procedures
9. Operation and Maintenance: Requirements for operating and maintaining the power generation facility
10. Performance Standards: Required technical and operational performance standards
11. Force Majeure: Events constituting force majeure and consequences
12. Default and Termination: Events of default, cure periods, and termination rights
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Insurance: Required insurance coverage
15. Dispute Resolution: Procedures for resolving disputes, including choice of forum
16. Governing Law: Specification of Indonesian law as governing law
17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments
1. Renewable Energy Credits: Include when the project generates renewable energy credits or certificates
2. Grid Interconnection: Include when specific grid connection arrangements need to be detailed
3. Construction and Development: Include when the generating facility is not yet operational
4. Land Rights: Include when land access or rights need to be addressed
5. Local Content Requirements: Include when specific Indonesian local content requirements apply
6. Currency and Exchange Rate: Include when payments involve foreign currency considerations
7. Environmental Credits: Include when carbon credits or other environmental attributes are relevant
8. Change in Law Provisions: Include when specific provisions for regulatory changes are needed
1. Technical Specifications: Detailed technical specifications of the power generation facility
2. Testing Procedures: Procedures for testing and commissioning
3. Metering Requirements: Detailed metering specifications and procedures
4. Pricing Formula: Detailed pricing calculations and adjustments
5. Performance Standards: Detailed performance requirements and calculations
6. Form of Performance Security: Template for required performance security or guarantees
7. Operating Procedures: Detailed operating procedures and protocols
8. Interconnection Details: Technical details of grid interconnection
9. Insurance Requirements: Detailed insurance requirements and minimum coverage
10. Form of Direct Agreement: Template for direct agreement with lenders if required
Authors
Renewable Energy
Manufacturing
Mining
Industrial Processing
Commercial Real Estate
Data Centers
Agriculture
Retail
Utilities
Energy Storage
Infrastructure
Legal
Procurement
Operations
Finance
Risk Management
Sustainability
Compliance
Project Management
Technical Operations
Commercial
Environmental
Chief Legal Officer
Legal Counsel
Energy Procurement Manager
Sustainability Director
Chief Financial Officer
Technical Operations Manager
Facility Manager
Risk Manager
Commercial Director
Energy Trading Manager
Compliance Officer
Project Manager
Power Plant Manager
Contract Administrator
Environmental Manager
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