The Flexible Power Purchase Agreement serves as a cornerstone document in modern energy transactions within the United States. This contract type emerged from the need to accommodate the variable nature of renewable energy generation while meeting the complex requirements of power purchasers. It provides mechanisms for flexible delivery schedules, pricing adjustments, and market participation, while ensuring compliance with federal and state regulations. The agreement is particularly valuable when traditional fixed-volume PPAs may not adequately serve the parties' needs, such as in cases involving intermittent renewable resources or varying load requirements.
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1. Parties: Identification of contracting parties, including legal entity details
2. Background: Context of the agreement, including facility details and purpose
3. Definitions: Key terms used throughout the agreement
4. Product Definition: Specification of energy products, capacity, and environmental attributes
5. Pricing Mechanism: Price structure, including fixed and variable components
6. Delivery Terms: Delivery points, scheduling, and flexibility mechanisms
7. Term and Termination: Duration and termination conditions
1. Credit Support: Security requirements and credit provisions - used when dealing with parties without strong credit ratings
2. Development Milestones: Project development timeline and requirements - used for new facility construction
3. Storage Provisions: Terms related to energy storage - used when storage facilities are included
1. Facility Description: Technical specifications of the generating facility
2. Product Specifications: Detailed description of energy products and attributes
3. Pricing Schedule: Detailed pricing mechanisms and calculations
4. Operating Procedures: Day-to-day operational requirements and procedures
5. Performance Security: Form and calculation of required security
6. Metering Requirements: Technical specifications for metering and measurement
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