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Power Offtake Agreement

Power Offtake Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Power Offtake Agreement

"I need a Power Offtake Agreement for a new solar power facility in Hong Kong's New Territories, with commercial operations starting March 2025, including provisions for renewable energy credits and carbon offset mechanisms."

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Document background
The Power Offtake Agreement serves as the primary commercial instrument governing the long-term sale and purchase of electrical power in Hong Kong. This document is essential when establishing power purchase arrangements between generators and offtakers, whether for conventional or renewable energy sources. It details the technical, commercial, and legal framework for power delivery, incorporating Hong Kong's specific regulatory requirements including compliance with the Electricity Ordinance (Cap. 406) and the Scheme of Control Agreements. The agreement typically includes provisions for power pricing, delivery obligations, performance standards, metering requirements, and risk allocation, while accounting for Hong Kong's unique power market structure and environmental regulations. This document is particularly crucial for new power generation projects, industrial power purchase arrangements, and renewable energy initiatives in Hong Kong's evolving energy landscape.
Suggested Sections

1. Parties: Identification of the power producer/seller and the offtaker/buyer

2. Background: Context of the agreement, including facility description and purpose

3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents

4. Sale and Purchase Obligations: Core obligations regarding power supply and purchase commitments

5. Term and Effectiveness: Duration of agreement, conditions precedent, and effective date

6. Delivery Point and Title: Specification of power delivery location and transfer of title

7. Metering and Testing: Requirements for measuring delivered power and testing procedures

8. Pricing and Payment: Payment terms, calculation of charges, billing, and invoice disputes

9. Operating Procedures: Day-to-day operational requirements and protocols

10. Performance Standards: Required technical standards and performance guarantees

11. Maintenance and Outages: Scheduled maintenance, forced outages, and coordination requirements

12. Force Majeure: Definition of force majeure events and consequences

13. Default and Termination: Events of default, remedies, and termination procedures

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Dispute Resolution: Procedures for resolving disputes between parties

16. Governing Law: Applicable law and jurisdiction

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

Optional Sections

1. Environmental Attributes: Terms regarding renewable energy credits or environmental benefits - used when facility generates renewable energy

2. Grid Connection: Requirements for grid interconnection - used when seller is responsible for grid connection

3. Construction and Development: Project development milestones - used for facilities not yet operational

4. Security Arrangements: Performance security requirements - used when credit support is required

5. Change in Law: Allocation of risks from regulatory changes - used in long-term agreements

6. Insurance: Required insurance coverage - used when specific insurance requirements exist

7. Local Content Requirements: Local sourcing obligations - used when required by regulations

8. Step-in Rights: Lender's step-in provisions - used when project financing is involved

9. Capacity Trading: Rules for trading capacity rights - used in markets with capacity trading

Suggested Schedules

1. Facility Description: Technical specifications of the power generation facility

2. Testing Procedures: Detailed procedures for facility testing and performance verification

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

4. Pricing Formula: Detailed calculation of power purchase price including adjustments

5. Operating Procedures: Detailed protocols for day-to-day operations and communications

6. Performance Standards: Specific technical and operational performance requirements

7. Form of Performance Security: Template for required security instruments

8. Interconnection Requirements: Technical specifications for grid connection

9. Monthly Report Format: Template for required operational reporting

10. Maintenance Schedule: Planned maintenance periods and procedures

11. Contact Information: List of key contacts and authorized representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions

























































Clauses








































Relevant Industries

Energy & Utilities

Power Generation

Renewable Energy

Industrial Manufacturing

Infrastructure

Mining

Commercial Real Estate

Data Centers

Healthcare

Relevant Teams

Legal

Commercial

Operations

Engineering

Finance

Risk Management

Environmental Compliance

Procurement

Project Management

Regulatory Affairs

Relevant Roles

General Counsel

Energy Procurement Manager

Power Plant Manager

Commercial Director

Technical Director

Risk Manager

Environmental Compliance Officer

Chief Operating Officer

Project Finance Manager

Contract Manager

Operations Manager

Regulatory Compliance Manager

Chief Financial Officer

Energy Trading Manager

Facility Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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