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Green Power Purchase Agreement

Green Power Purchase Agreement Template for South Africa

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Key Requirements PROMPT example:

Green Power Purchase Agreement

"Need a Green Power Purchase Agreement for a 50MW solar facility with battery storage to supply our manufacturing plant in Gauteng, South Africa, with operations expected to commence by March 2025; must include provisions for excess power storage and peak demand management."

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Document background
A Green Power Purchase Agreement (PPA) is a crucial instrument in South Africa's renewable energy market, facilitating the direct procurement of clean energy between generators and consumers. This document type has gained significant importance due to South Africa's energy security challenges and the growing demand for sustainable power solutions. It is typically used when an independent power producer wishes to sell renewable energy to private off-takers or municipalities, requiring careful consideration of the Electricity Regulation Act, NERSA requirements, and grid connection rules. The agreement includes detailed provisions for energy pricing, delivery commitments, performance guarantees, and risk allocation, while addressing specific requirements of South African energy regulations and environmental laws. This document type has become increasingly relevant with the government's push for renewable energy adoption and the allowance of private generation projects up to 100MW without licensing.
Suggested Sections

1. Parties: Identification and details of the power producer and purchaser

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

3. Definitions and Interpretation: Definitions of terms used in the agreement and rules of interpretation

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

5. Term and Effective Date: Duration of the agreement and conditions for effectiveness

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

7. Delivery Point and Title: Specification of where energy will be delivered and transfer of ownership

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

9. Price and Payment: Energy price, payment terms, and billing procedures

10. Performance Standards: Required operational standards and guaranteed performance levels

11. Curtailment and System Operations: Rules for reducing or interrupting energy delivery

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

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

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Insurance and Liability: Required insurance coverage and liability limitations

16. Confidentiality: Protection of confidential information

17. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Construction and Development: Used when the facility is not yet operational, covering construction milestones and requirements

2. Grid Connection: Include when grid connection arrangements need to be specified separately

3. Environmental Attributes: Used when carbon credits or other environmental benefits are separately traded

4. Battery Storage: Include when the facility includes energy storage systems

5. Local Content Requirements: Used when there are specific local content or economic development obligations

6. Step-in Rights: Include when lenders require step-in rights or for critical supply arrangements

7. Wheeling Arrangements: Used when power needs to be transmitted through third-party networks

8. Change in Law: Detailed provisions for regulatory changes when operating in uncertain regulatory environments

9. Carbon Tax Provisions: Include specific provisions relating to carbon tax implications and allocations

Suggested Schedules

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

2. Performance Requirements: Detailed performance standards and testing procedures

3. Pricing Schedule: Detailed pricing mechanisms, escalation formulas, and payment terms

4. Operating Procedures: Detailed operational requirements and procedures

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

6. Form of Direct Agreement: Standard form for direct agreements with lenders

7. Insurance Requirements: Detailed insurance specifications and requirements

8. Connection Specifications: Technical specifications for grid connection

9. Environmental and Social Requirements: Detailed environmental and social obligations

10. Project Timeline: Construction and development milestones if applicable

11. Performance Security Forms: Templates for required performance security instruments

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

Renewable Energy

Manufacturing

Mining

Commercial Real Estate

Retail

Agriculture

Data Centers

Industrial Processing

Healthcare

Education

Telecommunications

Relevant Teams

Legal

Procurement

Sustainability

Operations

Finance

Risk Management

Environmental Compliance

Technical Operations

Commercial

Project Development

Asset Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Energy Manager

Sustainability Director

Procurement Manager

Project Developer

Power Plant Manager

Legal Counsel

Commercial Director

Risk Manager

Environmental Compliance Officer

Operations Director

Technical Director

Contract 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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