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Power Sales Agreement

Power Sales Agreement Template for Indonesia

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Key Requirements PROMPT example:

Power Sales Agreement

"I need a Power Sales Agreement under Indonesian law for a new 50MW solar power project in East Java, with PLN as the off-taker, scheduled to commence commercial operations in March 2025, including provisions for renewable energy credits and green certificates."

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Document background
The Power Sales Agreement is a critical document used in Indonesia's energy sector to formalize the commercial and technical arrangements between power producers and purchasers. It is essential for both conventional and renewable energy projects, typically used when an independent power producer plans to sell electricity to PLN (the state electricity company) or private off-takers. The agreement must comply with Indonesian regulations, particularly the Electricity Law (Law No. 30 of 2009) and various implementing regulations issued by the Ministry of Energy and Mineral Resources. The document covers essential aspects such as power delivery obligations, pricing mechanisms, operational requirements, and risk allocation. It is particularly relevant in the context of Indonesia's growing energy demand and the government's push for increased private sector participation in the power sector.
Suggested Sections

1. Parties: Identification of the power seller and buyer, including their legal status and authority

2. Background: Context of the agreement, including project description and relevant licenses

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity

5. Term and Effectiveness: Duration of the agreement and conditions for effectiveness

6. Facilities and Connection: Requirements for power generation facilities and grid connection

7. Operating Procedures: Protocols for day-to-day operations and dispatch

8. Metering and Testing: Requirements for measuring and verifying electricity delivery

9. Pricing and Payment: Tariff structure, payment terms, and invoicing procedures

10. Performance Security: Requirements for performance bonds or other security arrangements

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

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

13. Dispute Resolution: Procedures for resolving disputes

14. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

15. Miscellaneous: Standard provisions including notices, amendments, and assignments

Optional Sections

1. Environmental Compliance: Required for projects with significant environmental impact, covering environmental obligations and compliance requirements

2. Local Content Requirements: Required for projects subject to Indonesian local content regulations

3. Interconnection Arrangements: Required when separate interconnection agreements are not used

4. Fuel Supply Arrangements: Required for thermal power plants, addressing fuel supply obligations

5. Insurance: Detailed insurance requirements, often included as a separate section for large projects

6. Step-in Rights: Required when lender financing is involved, addressing lender's step-in rights

7. Change in Law: Required for long-term agreements, addressing regulatory change risks

Suggested Schedules

1. Technical Specifications: Detailed specifications of the power generation facility

2. Testing and Commissioning Procedures: Procedures for initial and periodic testing

3. Metering Requirements: Detailed metering specifications and procedures

4. Tariff and Payment Calculations: Detailed formulas and examples for tariff calculations

5. Minimum Functional Specifications: Required performance parameters and standards

6. Operating Procedures: Detailed procedures for day-to-day operations

7. Form of Performance Security: Template for performance bond or security

8. Grid Code Requirements: Technical requirements for grid compliance

9. Site Description: Details of the project site and connection point

10. Required Permits: List of permits and licenses required for the project

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

Energy

Power Generation

Infrastructure

Utilities

Renewable Energy

Industrial

Mining

Manufacturing

Relevant Teams

Legal

Commercial

Operations

Finance

Risk Management

Regulatory Affairs

Project Development

Technical

Procurement

Business Development

Compliance

Corporate Strategy

Relevant Roles

Power Plant Manager

Energy Trading Director

Commercial Director

Legal Counsel

Regulatory Compliance Officer

Chief Financial Officer

Project Manager

Technical Director

Operations Manager

Risk Manager

Business Development Manager

Energy Procurement Manager

Contract Administrator

Chief Operating Officer

Transmission System Manager

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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