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Power Purchase Contract Template for Malaysia

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Key Requirements PROMPT example:

Power Purchase Contract

"I need a Power Purchase Contract under Malaysian law for a 50MW solar power facility in Selangor, with commercial operations starting March 2025, including specific provisions for renewable energy credits and environmental compliance."

Document background
The Power Purchase Contract is a fundamental agreement in Malaysia's energy sector, used to formalize the relationship between power generators and purchasers, typically involving Tenaga Nasional Berhad (TNB) as the main utility company. This document is essential when establishing new power generation facilities or renewing existing power supply arrangements in Malaysia. It must comply with the Malaysian Electricity Supply Act 1990, Energy Commission Act 2001, and related regulations. The agreement covers crucial aspects including power delivery obligations, pricing mechanisms, technical requirements, environmental compliance, and operational procedures. It's particularly relevant for both conventional and renewable energy projects, requiring careful consideration of Malaysia's specific energy policy framework and grid connection requirements.
Suggested Sections

1. Parties: Identification of the power producer/seller and the power purchaser/buyer

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

3. Definitions and Interpretation: Definitions of technical and legal terms, rules of interpretation

4. Sale and Purchase Obligations: Core obligations regarding power sale and purchase, including minimum take-or-pay provisions

5. Term and Termination: Duration of agreement, conditions precedent, termination rights

6. Facility and Connection: Requirements for power facility and grid connection

7. Metering and Testing: Standards and procedures for power measurement and testing

8. Price and Payment: Tariff structure, billing procedures, payment terms

9. Performance Security: Requirements for performance bonds or other security

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

11. Default and Remedies: Events of default, cure periods, and remedies

12. Dispute Resolution: Procedures for resolving disputes

13. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Change in Law: Provisions addressing regulatory changes - include for long-term PPAs

2. Carbon Credits: Rights and procedures regarding carbon credits - include for renewable energy projects

3. Insurance: Specific insurance requirements - include for larger facilities

4. Local Content: Local content requirements - include if required by regulations

5. Step-in Rights: Lender's step-in rights - include if project financing is involved

6. Capacity Testing: Detailed capacity testing procedures - include for conventional power plants

7. Interconnection: Detailed interconnection provisions - include if complex grid connection required

Suggested Schedules

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

2. Testing Procedures: Detailed procedures for testing and commissioning

3. Metering Requirements: Technical specifications for metering equipment

4. Tariff and Payment Calculations: Detailed formulae for price calculations

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

6. Performance Standards: Required performance levels and measurement methods

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

8. Grid Connection Requirements: Technical requirements for grid connection

9. Environmental Standards: Required environmental compliance standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Energy & Utilities

Power Generation

Renewable Energy

Infrastructure

Manufacturing

Industrial

Mining

Commercial Real Estate

Public Sector

Relevant Teams

Legal

Operations

Commercial

Regulatory Affairs

Finance

Technical Engineering

Environmental Compliance

Risk Management

Business Development

Project Management

Relevant Roles

Energy Project Manager

Power Plant Manager

Legal Counsel

Regulatory Compliance Officer

Commercial Director

Chief Technical Officer

Business Development Manager

Risk Manager

Operations Director

Finance Director

Environmental Compliance Manager

Grid Connection Engineer

Energy Trading Manager

Contract Administrator

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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