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Power Offtake Agreement

Power Offtake Agreement Template for Malaysia

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Key Requirements PROMPT example:

Power Offtake Agreement

"I need a Power Offtake Agreement for a 50MW solar power plant in Johor, Malaysia, planning to commence operations in March 2025, with specific provisions for variable renewable energy output and grid stability requirements."

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Document background
The Power Offtake Agreement is a fundamental document in Malaysia's energy sector, typically used when establishing long-term power purchase arrangements between independent power producers and utilities or large industrial consumers. This agreement type is essential for power project financing and development, providing the contractual foundation for revenue streams and operational requirements. The document must comply with Malaysian regulatory requirements, including those set by the Energy Commission (Suruhanjaya Tenaga) and grid operator. It includes comprehensive technical specifications, performance standards, pricing mechanisms, and risk allocation provisions, making it crucial for both conventional and renewable energy projects. The agreement's structure reflects Malaysia's specific market conditions and regulatory framework, while incorporating international best practices in power project contracting.
Suggested Sections

1. Parties: Identification of the power producer and the offtaker, including their registered addresses and company details

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

3. Definitions and Interpretation: Detailed definitions of technical and commercial terms, rules of interpretation

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of power, including exclusivity provisions

5. Term and Effective Date: Duration of the agreement, conditions precedent, and effective date

6. Metering and Billing: Requirements for measuring delivered energy, billing procedures, and disputes

7. Payment Terms: Payment obligations, calculations, invoicing, and payment security requirements

8. Performance Standards: Required technical standards, availability requirements, and performance guarantees

9. Grid Connection and Operations: Requirements for connection to grid, dispatch procedures, and operational protocols

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

11. Termination: Termination events, procedures, and consequences

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

13. Governing Law: Malaysian law as governing law and related jurisdictional provisions

14. Assignment and Change of Control: Restrictions and procedures for assignment and change in ownership

15. Confidentiality: Protection of confidential information and permitted disclosures

16. Boilerplate Provisions: Standard contractual provisions including notices, amendments, entire agreement

Optional Sections

1. Construction and Development: Required for new facilities, covering construction obligations, timelines, and testing

2. Renewable Energy Credits: For renewable energy facilities, addressing ownership and trading of renewable energy certificates

3. Interconnection Works: Detailed section required if specific interconnection infrastructure needs to be built

4. Fuel Supply: For conventional power plants, addressing fuel supply arrangements and responsibilities

5. Environmental Credits: For projects generating carbon credits or other environmental attributes

6. Land Rights: Required if the agreement needs to address land lease or access rights

7. Insurance: Detailed insurance requirements beyond standard provisions

8. Local Content: Requirements for local content and technology transfer if applicable

Suggested Schedules

1. Facility Description: Technical specifications of the power generation facility

2. Testing Procedures: Detailed procedures for testing and commissioning

3. Tariff and Payment: Detailed tariff structure, calculations, and adjustment mechanisms

4. Minimum Performance Standards: Detailed technical performance requirements and testing procedures

5. Grid Connection Requirements: Technical requirements for grid connection and compliance

6. Metering Requirements: Specifications for metering equipment and procedures

7. Form of Performance Security: Template for performance bonds or other security instruments

8. Operating Procedures: Detailed procedures for day-to-day operation and maintenance

9. Insurance Requirements: Detailed specification of required insurance coverage

10. Dispute Resolution Procedures: Detailed procedures for various types of disputes

11. Form of Direct Agreement: Template agreement between lenders, offtaker, and producer

12. Environmental Standards: Specific environmental compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 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 & Utilities

Power Generation

Renewable Energy

Infrastructure

Industrial Manufacturing

Mining

Oil & Gas

Clean Technology

Public Utilities

Relevant Teams

Legal

Commercial

Operations

Power Generation

Regulatory Affairs

Risk Management

Finance

Project Development

Environmental Compliance

Technical Services

Grid Operations

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Head of Power Generation

Energy Trading Manager

Commercial Director

Technical Director

Project Development Manager

Regulatory Compliance Officer

Power Plant Manager

Contract Manager

Risk Manager

Operations Director

Business Development Director

Environmental Compliance Manager

Grid Connection 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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