Corporate Power Purchase Agreements (CPPAs) are increasingly important in Singapore's evolving energy market, particularly as businesses seek to secure reliable and sustainable power supplies. These agreements are crucial for companies looking to meet their sustainability goals and manage long-term energy costs. The CPPA structure in Singapore must comply with the Energy Market Authority's requirements and can be used for both on-site and off-site generation facilities. They typically include detailed provisions for power delivery, pricing mechanisms, regulatory compliance, and risk allocation, while addressing Singapore's specific market conditions and renewable energy targets.
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Key Requirements PROMPT example:
Corporate Power Purchase Agreement
"Need a Corporate Power Purchase Agreement for our Singapore-based tech company to purchase renewable energy from a local solar farm operator, with a minimum commitment of 50 GWh annually starting March 2025, including provisions for RECs and carbon offset credits."
1. Parties: Identification and details of the power generator/seller and corporate buyer
2. Background: Context of the agreement, including facility details and purpose
3. Definitions: Key terms used tHRoughout the agreement including regulatory and technical definitions
4. Supply Obligations: Core obligations regarding electricity supply and delivery, including quantity and quality requirements
5. Pricing and Payment: Price structure, payment terms, billing procedures and payment security
6. Term and Termination: Duration of agreement, renewal options and termination provisions
7. Metering and Billing: Requirements for electricity metering, measurement and billing processes
8. Force Majeure: Events excusing performance obligations and related procedures
9. Representations and Warranties: Standard and specific warranties from both parties
10. Regulatory Compliance: Obligations to comply with Singapore energy regulations and market rules
11. Dispute Resolution: Procedures for resolving disputes including arbitration provisions
12. Governing Law: Application of Singapore law and jurisdiction
1. Green Attributes: Treatment of renewable energy certificates and environmental attributes, applicable for renewable energy sources
2. Performance Security: Requirements for security deposits or guarantees, used when credit risk mitigation is required
3. Change in Law: Provisions for handling regulatory changes, important for long-term agreements
4. Carbon Credits: Allocation and handling of carbon credits or offsets, relevant when dealing with renewable energy
5. Grid Connection: Specific provisions regarding grid connection and infrastructure, needed for direct supply arrangements
1. Facility Description: Technical specifications of the generation facility including location, capacity, and technology
2. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment formulas
3. Operating Procedures: Day-to-day operational requirements, protocols, and maintenance schedules
4. Performance Standards: Required technical and operational standards including availability and reliability metrics
5. Metering Specifications: Technical requirements for electricity metering and measurement
6. Form of Performance Security: Template for any required security instruments or guarantees
7. Communication Protocols: Procedures for routine and emergency communications between parties
8. Regulatory Compliance Checklist: List of applicable regulations and compliance requirements under Singapore law
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