Green Power Purchase Agreement

Green Power Purchase Agreement Template for Denmark

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Document background

The Green Power Purchase Agreement (Green PPA) is a crucial instrument in Denmark's renewable energy landscape, enabling direct procurement of green electricity between generators and corporate consumers. This document type has gained significant importance as organizations seek to meet sustainability goals and secure long-term clean energy supply. Used when a company wishes to purchase renewable electricity directly from a generator, it reflects Denmark's advanced regulatory framework and established renewable energy market. The agreement includes essential provisions for power delivery, pricing, guarantees of origin, and grid compliance, while addressing specific Danish market characteristics and regulatory requirements. It's particularly relevant given Denmark's ambitious climate targets and the increasing corporate demand for documented green energy consumption.

Suggested Sections

1. Parties: Identification of the seller (generator) and buyer, including company details and registration numbers

2. Background: Context of the agreement, including facility details and parties' objectives

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of electricity

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

6. Delivery Point and Transfer of Risk: Specification of where electricity is delivered and risk transfer

7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records

8. Price and Payment Terms: Pricing structure, payment mechanics, and invoicing requirements

9. Guarantees of Origin: Transfer and handling of renewable energy certificates

10. Force Majeure: Events excusing performance and associated procedures

11. Change in Law: Mechanism for addressing regulatory changes affecting the agreement

12. Representations and Warranties: Standard and specific warranties from both parties

13. Liability and Indemnification: Allocation of risks and liability caps

14. Confidentiality: Protection of confidential information

15. Dispute Resolution: Procedure for resolving disputes under Danish law

16. Governing Law: Confirmation of Danish law as governing law

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Construction and Commissioning: Required for PPAs involving new facilities, covering construction milestones and requirements

2. Grid Connection: Detailed provisions when seller is responsible for grid connection

3. Production Forecasting: Required when buyer needs advance production estimates

4. Storage Provisions: Used when energy storage is part of the facility

5. Curtailment: Required when grid operator may require production reduction

6. Direct Marketing: Required when power is sold directly to end users

7. Financial Security: Used when credit support or performance security is required

8. Change of Control: Required when restrictions on ownership changes are needed

Suggested Schedules

1. Facility Description: Technical specifications of the renewable energy facility

2. Production Profile: Expected generation pattern and any guaranteed minimums

3. Pricing Mechanism: Detailed pricing calculations and adjustments

4. Metering Specifications: Technical requirements for metering equipment

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

6. Form of Guarantees of Origin: Template for renewable energy certificates

7. Technical Requirements: Grid code and technical compliance requirements

8. Form of Direct Agreement: Template for lender direct agreements if required

9. Testing and Commissioning: Procedures for facility testing and acceptance

10. Insurance Requirements: Required insurance coverage specifications

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Green Power Purchase Agreement Template for Denmark

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