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Power Purchase Agreement Renewable (Energy)

Power Purchase Agreement Renewable (Energy) Template for Indonesia

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Key Requirements PROMPT example:

Power Purchase Agreement Renewable (Energy)

"I need a Power Purchase Agreement Renewable (Energy) for a 50MW solar power project in East Java, Indonesia, with commercial operations planned for March 2025, including provisions for battery storage and carbon credit trading."

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Document background
The Power Purchase Agreement Renewable (Energy) is a crucial document in Indonesia's renewable energy sector, typically used when an independent power producer intends to develop and operate a renewable energy facility and sell the generated power to PT PLN (Persero), Indonesia's state electricity company. The agreement is structured within the framework of Indonesian energy regulations, particularly Law No. 30 of 2009 on Electricity and recent renewable energy regulations such as Presidential Regulation No. 112 of 2022. The document comprehensively addresses project development, operational requirements, pricing mechanisms, and risk allocation, while incorporating specific provisions for renewable energy generation such as intermittency management and grid stability. It serves as the foundational agreement for project financing and determines the project's long-term viability, typically covering a 20-30 year operational period.
Suggested Sections

1. Parties: Identification of the power producer (IPP) and the power purchaser (typically PLN in Indonesia), including their legal status and authority

2. Background: Context of the agreement, project overview, and relevant regulatory framework

3. Definitions: Comprehensive definitions of technical, financial, and legal terms used throughout the agreement

4. Project Development and Construction: Obligations regarding facility construction, testing, and commissioning

5. Sale and Purchase Obligations: Core obligations for power delivery and purchase, including minimum take-or-pay provisions

6. Commercial Operations: Requirements and procedures for achieving and maintaining commercial operations

7. Metering and Testing: Requirements for measuring delivered electricity and testing procedures

8. Billing and Payment: Payment terms, invoicing procedures, and dispute resolution for payments

9. Grid Connection and Technical Requirements: Technical specifications for grid connection and power delivery

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

11. Default and Termination: Events of default, cure periods, and termination rights

12. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

13. Change in Law: Mechanisms for addressing regulatory changes affecting the project

14. Assignment and Transfer: Conditions for transferring rights and obligations under the agreement

15. Governing Law: Specification of Indonesian law as governing law and related provisions

Optional Sections

1. Environmental Credits: Provisions regarding carbon credits and other environmental attributes, used when project includes carbon credit trading

2. Battery Storage: Special provisions for energy storage systems, included for projects with battery components

3. Deemed Generation: Compensation mechanisms for curtailed power, used in markets with grid stability issues

4. Local Content Requirements: Specific provisions regarding Indonesian local content requirements, included when required by regulations

5. Interconnection Cost Sharing: Allocation of grid connection costs, included when these costs are shared between parties

6. Currency Conversion: Provisions for managing currency risk, included in PPAs with international financing

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of the power facility

2. Testing Procedures: Procedures for testing and commissioning the facility

3. Tariff and Payment Calculations: Detailed formulas for calculating payments and adjustments

4. Minimum Functional Specifications: Required technical and performance standards

5. Grid Connection Requirements: Technical requirements for grid interconnection

6. Form of Performance Security: Template for performance bonds or guarantees

7. Commissioning and Testing Requirements: Detailed procedures for facility commissioning

8. Operating Procedures: Day-to-day operational requirements and procedures

9. Insurance Requirements: Required insurance coverage and terms

10. Environmental and Social Requirements: Environmental and social compliance requirements

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

alex.den.21@genieai.co
Relevant legal definitions











































































Clauses













































Relevant Industries

Renewable Energy

Power & Utilities

Infrastructure

Clean Technology

Environmental Services

Project Finance

Construction & Engineering

Energy Storage

Grid Infrastructure

Sustainable Development

Relevant Teams

Legal

Project Development

Commercial

Technical

Environmental & Regulatory

Finance

Risk Management

Operations

Business Development

Grid Connection

Compliance

Relevant Roles

General Counsel

Energy Project Manager

Renewable Energy Developer

Power Purchase Agreement Specialist

Legal Director

Chief Technical Officer

Commercial Director

Risk Manager

Environmental Compliance Officer

Project Finance Manager

Business Development Director

Grid Connection Engineer

Regulatory Affairs Manager

Operations Director

Chief Financial Officer

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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