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Green Power Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

Green Power Purchase Agreement

"I need a Green Power Purchase Agreement for a new 50MW solar facility in Johor, Malaysia, where my company will purchase 100% of the output for 20 years starting March 2025, with specific provisions for environmental attributes and carbon credits."

Document background
The Green Power Purchase Agreement serves as a crucial legal instrument in Malaysia's renewable energy landscape, enabling the direct procurement of renewable energy between generators and consumers. This document is essential when a company or organization wishes to source renewable energy directly from a producer, whether for sustainability goals, regulatory compliance, or economic benefits. The agreement must comply with Malaysian legislation, particularly the Renewable Energy Act 2011 and SEDA regulations, while addressing technical, commercial, and operational aspects of renewable energy procurement. It includes provisions for energy pricing, delivery specifications, environmental attributes, and grid connection requirements specific to the Malaysian context. The document is typically used for long-term arrangements, usually 10-25 years, and can be adapted for various renewable energy sources such as solar, wind, or biomass.
Suggested Sections

1. Parties: Identification of the power producer and the power purchaser, including their legal status and registered addresses

2. Background: Context of the agreement, including project overview, facility location, and regulatory framework

3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of renewable energy, including minimum purchase commitments

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

6. Facility Requirements: Technical specifications of the renewable energy facility and maintenance obligations

7. Delivery Point and Title: Specification of energy delivery point and transfer of title

8. Metering and Testing: Requirements for measuring delivered energy and testing procedures

9. Price and Payment: Pricing structure, payment terms, and billing procedures

10. Environmental Attributes: Ownership and trading of renewable energy certificates and environmental credits

11. Force Majeure: Events constituting force majeure and consequent rights and obligations

12. Default and Remedies: Events of default, cure periods, and available remedies

13. Dispute Resolution: Procedures for resolving disputes under Malaysian law

14. Representations and Warranties: Standard legal representations and specific technical warranties

15. Insurance: Required insurance coverage for both parties

16. Confidentiality: Protection of confidential information and permitted disclosures

17. Governing Law: Application of Malaysian law and jurisdiction

Optional Sections

1. Construction and Development: Include for new facilities requiring construction, covering construction milestones and obligations

2. Energy Storage: Include if the facility includes battery or other storage systems

3. Grid Connection: Include if the producer is responsible for grid connection infrastructure

4. Carbon Credits: Include if carbon credits or other environmental attributes are separately traded

5. Performance Security: Include if bank guarantees or other security instruments are required

6. Land Rights: Include if the agreement needs to address land lease or access rights

7. Local Content: Include if there are specific Malaysian local content requirements

8. Change in Law: Include detailed provisions if regulatory changes are a significant concern

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of the renewable energy facility

2. Testing Procedures: Procedures for commissioning and performance testing

3. Pricing Formula: Detailed calculation of energy prices including adjustments

4. Performance Standards: Required performance levels and liquidated damages

5. Metering Specifications: Technical requirements for metering equipment

6. Form of Performance Security: Template for bank guarantees or other security instruments

7. Operating Procedures: Detailed procedures for day-to-day operation and maintenance

8. Insurance Requirements: Specific insurance types and coverage levels required

9. Interconnection Details: Technical specifications for grid connection

10. Environmental Compliance: Specific environmental requirements and reporting procedures

Authors

Alex Denne

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

Relevant legal definitions











































Clauses




































Relevant Industries

Renewable Energy

Utilities

Manufacturing

Industrial

Commercial Real Estate

Data Centers

Agriculture

Mining

Technology

Retail

Banking and Finance

Healthcare

Relevant Teams

Legal

Sustainability

Procurement

Finance

Operations

Environmental Compliance

Risk Management

Commercial

Technical Operations

Regulatory Affairs

Project Development

Relevant Roles

Chief Sustainability Officer

Energy Procurement Manager

Renewable Energy Developer

Legal Counsel

Chief Financial Officer

Environmental Compliance Manager

Project Development Manager

Power Purchase Agreement Specialist

Sustainability Director

Energy Trading Manager

Technical Operations Manager

Risk Manager

Commercial Director

Regulatory Compliance Officer

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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