Power Purchase Agreement Solar

Power Purchase Agreement Solar Template for Denmark

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Document background

This Power Purchase Agreement Solar template is designed for use in the Danish market, where renewable energy transactions are governed by both national legislation and EU directives. The document is typically used when a solar facility owner/operator wishes to sell electricity to a commercial or industrial consumer (offtaker) under a long-term arrangement. It includes essential provisions required by Danish law, such as compliance with the Danish Renewable Energy Act and Electricity Supply Act, while addressing commercial aspects like pricing mechanisms, delivery obligations, and performance standards. The agreement is structured to accommodate various project sizes and configurations, from large utility-scale solar installations to commercial rooftop systems, and includes necessary provisions for grid connection, metering, and environmental attributes specific to the Danish market.

Suggested Sections

1. Parties: Identification of the seller (solar facility owner/operator) and buyer (offtaker), including full legal names and registration details

2. Background: Context of the agreement, including project overview and parties' objectives

3. Definitions: Defined terms used throughout the agreement, including technical, commercial, and legal terminology

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including delivery points and minimum/maximum volumes

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

6. Price and Payment: Pricing structure, payment terms, invoicing, and settlement procedures

7. Metering and Records: Requirements for measuring delivered electricity, maintenance of records, and verification procedures

8. Facility Operations: Obligations regarding facility maintenance, operations standards, and performance requirements

9. Grid Connection and Delivery: Requirements related to grid connection, delivery points, and coordination with grid operator

10. Force Majeure: Events constituting force majeure and consequences

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

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

13. Insurance: Required insurance coverage for both parties

14. Assignment and Change of Control: Rules regarding transfer of rights and obligations

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. Confidentiality: Protection of confidential information

17. Notices: Communication procedures between parties

18. Miscellaneous: Standard boilerplate provisions

Optional Sections

1. Green Certificates and Environmental Attributes: Include when parties wish to address ownership and trading of associated environmental certificates

2. Development and Construction: Include for projects not yet operational, covering construction milestones and commissioning

3. Storage Facilities: Include if the project includes battery storage components

4. Production Forecasting: Include if specific forecasting obligations are required

5. Direct Agreement: Include when project financing requires lender rights

6. Market Trading: Include for projects participating in electricity markets

7. Curtailment: Include detailed curtailment provisions if relevant to the project

8. Local Content Requirements: Include if specific Danish local content requirements apply

Suggested Schedules

1. Facility Description: Technical specifications of the solar facility, including location, capacity, and equipment

2. Testing and Commissioning Procedures: Detailed procedures for facility testing and commissioning

3. Operating Parameters: Technical and operational specifications, including performance guarantees

4. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustments

5. Metering Specifications: Technical requirements for metering equipment and procedures

6. Form of Direct Agreement: Standard form for lender's direct agreement

7. Form of Parent Company Guarantee: Standard form for parent company support

8. Insurance Requirements: Detailed insurance requirements and minimum coverage

9. Grid Connection Details: Technical specifications for grid connection

10. Contact Details: Key contact information for both parties

11. Form of Performance Security: Templates for any required performance security

12. Commissioning Schedule: Timeline and milestones for facility commissioning

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Power Purchase Agreement Solar Template for Denmark

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