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Power Purchase Agreement Renewable (Energy)

Power Purchase Agreement Renewable (Energy) Template for South Africa

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Key Requirements PROMPT example:

Power Purchase Agreement Renewable (Energy)

"I need a Power Purchase Agreement Renewable (Energy) for a 75MW solar project in Northern Cape, South Africa, with Eskom as the off-taker, including specific provisions for battery storage and expected commercial operation date in March 2025."

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Document background
The Power Purchase Agreement Renewable (Energy) is a crucial document in South Africa's renewable energy sector, used to formalize the long-term purchase of electricity generated from renewable sources. It is essential for independent power producers participating in the REIPPPP or engaging in private power purchase arrangements. The agreement addresses South Africa's unique energy market characteristics, including grid constraints, regulatory requirements, and the government's renewable energy targets. This document type has gained increasing importance due to South Africa's energy crisis and the push toward green energy solutions. It includes detailed provisions for technical compliance, pricing structures, performance standards, and risk allocation, while incorporating requirements specific to the South African legal framework, including B-BBEE requirements and environmental regulations.
Suggested Sections

1. Parties: Identification of the power producer (seller) and the power purchaser (buyer), including their legal details and representatives

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

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

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

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

6. Construction and Development: Requirements for facility construction, testing, and commissioning

7. Commercial Operation: Conditions for achieving commercial operation and associated testing requirements

8. Metering and Testing: Requirements for measuring electricity delivery and quality testing

9. Billing and Payment: Payment terms, billing procedures, and dispute resolution for payments

10. Grid Connection and Operations: Requirements for grid connection, maintenance, and operational procedures

11. Performance Standards: Required technical and operational performance standards

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

13. Changes in Law and Economic Hardship: Provisions for handling regulatory changes and economic challenges

14. Insurance: Required insurance coverage and related obligations

15. Default and Remedies: Events of default and available remedies

16. Dispute Resolution: Procedures for resolving disputes between parties

17. Confidentiality: Protection of confidential information

18. Assignment and Change of Control: Restrictions and conditions for transfer of rights or ownership changes

19. Notices: Procedures for formal communications between parties

20. General Provisions: Standard boilerplate provisions including governing law, entire agreement, and amendments

Optional Sections

1. Carbon Credits and Environmental Attributes: Provisions regarding ownership and trading of carbon credits and environmental attributes, included when relevant to the project

2. Local Content Requirements: Specific provisions for local content and B-BBEE requirements, included when required by regulation or tender conditions

3. Storage Facilities: Provisions for energy storage systems, included when the project includes battery or other storage technology

4. Curtailment: Provisions for reducing power output on grid operator instruction, included when grid stability is a concern

5. Direct Agreement: Provisions regarding lender rights and step-in provisions, included when project financing is involved

6. Deemed Generation: Compensation for electricity that could have been generated but wasn't due to buyer's failure to take, included when relevant to project economics

7. Change in Weather Risk: Provisions for handling long-term changes in resource availability, included for weather-dependent renewables

Suggested Schedules

1. Facility Description: Detailed technical specifications of the power generation facility

2. Performance Specifications: Required technical performance parameters and testing procedures

3. Pricing and Payment Terms: Detailed pricing formula, escalation mechanisms, and payment procedures

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

5. Grid Connection Requirements: Technical specifications for grid connection and compliance requirements

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

7. Operating Procedures: Detailed operational requirements and procedures

8. Form of Performance Security: Template for required performance bonds or guarantees

9. Insurance Requirements: Detailed insurance coverage requirements

10. Calculation of Liquidated Damages: Methodology for calculating various liquidated damages

11. Environmental and Social Requirements: Environmental and social compliance requirements

12. Local Content Commitments: Detailed local content and B-BBEE commitments

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

Power & Utilities

Infrastructure

Environmental Services

Clean Technology

Project Finance

Construction

Mining (for private PPAs)

Manufacturing (for private PPAs)

Agricultural (for private PPAs)

Relevant Teams

Legal

Commercial

Operations

Technical

Risk & Compliance

Project Development

Finance

Environmental & Social

Grid Operations

Procurement

Business Development

Asset Management

Relevant Roles

Chief Executive Officer

Legal Counsel

Energy Project Manager

Commercial Director

Technical Director

Risk Manager

Compliance Officer

Business Development Manager

Power Plant Manager

Financial Director

Procurement Manager

Environmental Manager

Grid Connection Manager

Operations Manager

Contract Manager

Renewable Energy Developer

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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