The Power Purchase Agreement Renewable (Energy) is a crucial contract template used in the Netherlands for structuring long-term renewable energy supply arrangements. This document is particularly relevant in the context of corporate renewable energy procurement, where organizations seek to secure clean energy supplies while supporting new renewable energy projects. It incorporates Dutch legal requirements, EU energy regulations, and international best practices for renewable energy trading. The agreement is typically used when companies want to directly purchase renewable energy from generators, covering aspects such as energy delivery, pricing, certificates of origin, and operational requirements. It's designed to comply with Dutch energy market regulations while providing flexibility for different types of renewable energy projects and various commercial structures. The document becomes especially important as organizations pursue sustainability goals and seek to demonstrate concrete commitments to renewable energy procurement.
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1. Parties: Identification of the power producer (seller) and the purchaser, including full legal details
2. Background: Context of the agreement, including facility details and parties' objectives
3. Definitions: Detailed definitions of technical, commercial, and legal terms used in the agreement
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including delivery points and volume commitments
5. Term and Termination: Duration of the agreement, conditions for extension, and termination rights
6. Price and Payment: Pricing structure, payment terms, invoicing, and dispute procedures
7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records
8. Generation Facility: Specifications and requirements for the renewable energy facility
9. Grid Connection and Delivery: Requirements and responsibilities for grid connection and electricity delivery
10. Guarantees of Origin: Handling and transfer of renewable energy certificates and guarantees of origin
11. Force Majeure: Definition and consequences of force majeure events
12. Change in Law: Procedures for addressing regulatory changes affecting the agreement
13. Representations and Warranties: Standard and specific warranties from both parties
14. Liability and Indemnification: Allocation of risks and limitations of liability
15. Insurance: Required insurance coverage for both parties
16. Confidentiality: Protection of confidential information and permitted disclosures
17. Dispute Resolution: Procedures for resolving disputes, including choice of forum
18. Governing Law: Specification of Dutch law as governing law and jurisdiction
19. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment
1. Sustainability Commitments: Additional environmental and social commitments, used when parties want to include specific sustainability targets
2. Development and Construction: Included when the facility is not yet operational, covering construction milestones and requirements
3. Storage Provisions: Required when the facility includes energy storage capabilities
4. Direct Agreement Provisions: Included when project financing requires direct agreements with lenders
5. Market Trading Provisions: Used when the PPA includes provisions for trading excess power
6. Capacity Market Participation: Required when the facility participates in capacity markets
7. Forecasting and Scheduling: Detailed when specific forecasting obligations are required
8. Performance Guarantees: Including minimum performance requirements, used for larger or critical supply arrangements
1. Facility Technical Specifications: Detailed technical description of the generation facility
2. Pricing Mechanism: Detailed pricing calculations, adjustments, and examples
3. Operating Parameters: Technical and operational requirements for the facility
4. Metering Specifications: Technical requirements for metering equipment and procedures
5. Performance Testing: Testing procedures and acceptance criteria
6. Form of Direct Agreement: Template for direct agreement with lenders
7. Form of Parent Company Guarantee: Template for parent company guarantee if required
8. Insurance Requirements: Detailed insurance requirements and minimum coverage
9. Grid Connection Details: Technical specifications for grid connection
10. Form of Performance Security: Template for any required performance security or bank guarantees
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