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Virtual Ppa Renewable (Energy) Template for Indonesia

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Key Requirements PROMPT example:

Virtual Ppa Renewable (Energy)

"I need a Virtual PPA Renewable (Energy) agreement for a 50MW solar project in East Java, Indonesia, with settlement in USD and delivery starting March 2025, including provisions for carbon credit trading."

Document background
The Virtual PPA Renewable (Energy) agreement is utilized when corporate buyers seek to support renewable energy development in Indonesia while managing their electricity costs and environmental commitments. This document structure emerged as a response to Indonesia's evolving energy market and the growing corporate demand for renewable energy solutions. It enables companies to procure renewable energy through financial settlements rather than physical delivery, particularly useful in regions where direct retail access to renewable energy is limited. The agreement complies with Indonesian regulatory requirements, including those set by the Ministry of Energy and Mineral Resources, while incorporating international best practices for virtual PPAs. It addresses key aspects such as pricing mechanisms, environmental attributes, regulatory compliance, and risk allocation, making it suitable for both domestic and international corporations operating in Indonesia who wish to meet their sustainability goals while managing energy costs.
Suggested Sections

1. Parties: Identification of the power producer and the corporate buyer, including registration details as required under Indonesian law

2. Background: Context of the agreement, including project details and parties' objectives

3. Definitions: Definitions of technical terms, regulatory references, and contract-specific terminology

4. Term and Conditions Precedent: Duration of the agreement and conditions that must be satisfied before the agreement becomes effective

5. Virtual PPA Structure: Mechanism for virtual settlement, including reference prices, settlement calculations, and payment obligations

6. Energy Production and Sales: Obligations regarding energy generation, delivery points, and measurement

7. Pricing and Payment: Price structure, payment terms, invoicing requirements, and settlement procedures

8. Environmental Attributes: Ownership and transfer of renewable energy certificates and other environmental benefits

9. Metering and Reporting: Requirements for measuring and reporting energy production and calculations for settlement

10. Force Majeure: Events constituting force majeure and their consequences

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

12. Dispute Resolution: Procedures for resolving disputes under Indonesian law

13. Governing Law: Confirmation of Indonesian law as governing law and related jurisdictional provisions

Optional Sections

1. Direct Agreements: Required when project financing is involved, establishing rights of lenders

2. Change in Law: Include when regulatory environment is uncertain or significant changes are anticipated

3. Market Disruption: Include when reference market prices are crucial to the virtual settlement mechanism

4. Capacity Rights: Include when capacity payments or rights are relevant to the project

5. Insurance: Include detailed insurance requirements when required by financiers or risk assessment

6. Local Content Requirements: Include when project must comply with Indonesian local content regulations

7. Grid Interface: Include when specific grid connection requirements need to be addressed

Suggested Schedules

1. Schedule 1 - Project Specifications: Technical details of the renewable energy facility, including capacity and technology

2. Schedule 2 - Testing and Commissioning: Procedures and requirements for facility testing and commercial operation

3. Schedule 3 - Calculation of Payments: Detailed methodology for calculating virtual settlements and payments

4. Schedule 4 - Reference Price Methodology: Specification of market reference prices and calculation methods

5. Schedule 5 - Form of Performance Security: Required form and terms of any performance security or guarantees

6. Schedule 6 - Operating Parameters: Technical and operational requirements for the facility

7. Schedule 7 - Metering Specifications: Technical requirements for metering equipment and procedures

8. Schedule 8 - Environmental Attributes Documentation: Forms and procedures for environmental attributes transfer

9. Appendix A - Required Permits: List of permits and authorizations required under Indonesian law

10. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

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

Relevant legal definitions

























































Clauses








































Relevant Industries

Renewable Energy

Power Generation

Utilities

Manufacturing

Technology

Industrial

Mining

Data Centers

Real Estate

Retail

Relevant Teams

Legal

Procurement

Sustainability

Finance

Risk Management

Corporate Strategy

Environmental Compliance

Energy Trading

Treasury

Operations

Relevant Roles

Chief Sustainability Officer

Energy Procurement Manager

Legal Counsel

Chief Financial Officer

Sustainability Director

Power Purchase Agreement Manager

Environmental Compliance Manager

Energy Trading Manager

Risk Manager

Corporate Strategy Director

Renewable Energy Project Manager

Environmental, Social and Governance (ESG) 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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