Our renewable energy power purchase agreement template is a general contract sample for businesses and individuals looking to purchase renewable energy sources, such as solar, wind, or hydroelectricity. This PPA template can be used as the basis of the agreement to outline each party’s responsibilities as it relates to the production and use of the power generated by the chosen renewable system.
Renewable Energy Power Purchase Agreement (hereinafter the ‘Agreement’) Between:
[Developer.FirstName] [Developer.LastName] (hereinafter the ‘Developer’)
[Developer.Country] owning a registered office at [Developer.Company] [Developer.StreetAddress]
[Buyer.FirstName] [Buyer.LastName] (hereinafter the ‘Buyer’)
[Buyer.Country] with an office located on [Buyer.Company] [Buyer.StreetAddress] .
Both Buyer/Client and Developer may be considered as “Party” and together as “Parties” on the [Document.CreatedDate] .
Customer wishes to increase its use of environmentally friendly energy and to optimize the rates paid for electricity;
Customer owns the Property(ies) (as hereafter defined); The Developer confirms to complete the entire construction and commissioning of their Project; The Developer confirms to sell the renewable energy output from the Project to the Buyer;Buyer wishes to buy the renewable energy generated according to the terms and conditions presented in the Agreement.
The developer handles developing, operating, and maintaining the renewable power plant. The buyer handles buying the agreed-upon amount of power at the agreed-upon rate from the developer.
Now, Therefore, the Parties intend to be legally bound to all the conditions, warranties, and representations mentioned in this Agreement. These clauses are as follows:
The interpretation of expressions and terms in this Agreement are according to the meanings provided in Schedule A.
Terms not mentioned in this schedule shall have the same meaning as mentioned in the Oxford dictionary.
Further, the heading of all the paragraphs mentioned are majorly for convenience only, and in case of a conflict, the context of the paragraph should be considered.
Terms such as Buyer is the client in this Agreement. Similarly, the Developer is the power provider. This information shall be mentioned and interpreted as given in the schedule.
It should also include the meaning of terms such as project, government, metering system, net renewable energy output, and relevant consents.
Under this Agreement’s provisions and terms and conditions, the Developer will sell the net energy output to the Buyer.
Subject to all terms and conditions of the Agreement, the Buyer should purchase capacity and renewable energy from the Developer on the basis of the prevailing tariff.
The amount due for the net energy output is under the rules mentioned in the payment section.
Renewable Energy PPAs are usually long-term agreements. The typical term ranges between 10 – 15 years but can be extended if needed.
The initial term of the Agreement would commence on (Enter date) for a period of (Enter number) years. This term will conclude on (Enter date0 unless terminated earlier under this Agreement.
Both parties can agree to change the length of the Agreement’s term as per their needs by giving at least (Enter number) month(s) written notice.
Any of the Parties can extend the tenure of the Agreement as per the agreed renewal terms as agreed by both Developer and Buyer.
All payments and money received should be calculated in (Add the accepted currency). The invoice shared by the Buyer must feature detailed calculations highlighting any amounts owed.
A special invoice should be generated in case of a breach or default. This should cover all the amounts owed and details on any payment delays.
Developer should be obliged to finish the Project’s construction and should also conduct the prescribed operations.
The Developer is responsible for maintaining all licenses, approvals, and permits demanded by local agencies.
The Developer shall be obliged to obtain tax credits, loans, or grants from public and private institutions.
The Buyer should own and maintain the Metering System with performance measurements.
The Parties should be responsible for testing and inspecting all the Metering Equipment.
One party warrants the other that each party is duly formed and under the excellent standing of the law of [Developer.Country] and is qualified to conduct business in (country of the Project) by complying with all the laws.
Unless stated otherwise, the Developer shall own, design, and construct the Project under the Agreement’s laws, regulations, and rules.
Buyer agrees to pay for the net energy output of (Add the amount of net energy required).
This agreement is for a net energy output only. If the buyer’s power needs exceed this, they’ll have to pay the regular power grid costs for additional electricity. If this happens consistently, both parties might need to renegotiate and adjust the net energy output required.
Where the Parties or a Party is required to perform any act or to fulfill an obligation under this Agreement within a specified time, and for any reason that Party cannot perform within the time stated, then that Party may request an extension of the time for performance. The non-requesting Party shall give such requests for extensions of time due and reasonable consideration and shall not unreasonably deny a request, but the non-requesting Party may grant such a request on terms and conditions as to future performance.
Buyer may give a notice of default under this Agreement (a “Buyer Notice of Default”) upon the occurrence of any of the following events unless caused by a breach by Buyer of this Agreement (each a “Developer Event of Default”).
Abandonment of construction of the Project by the Developer after the commencement of Construction without the written consent of the Buyer.
Failure of the Developer to achieve the requirements for the Commercial Operations Date within one (1) calendar year after the Required Commercial Operations Date. Unless, prior to the expiration of such one (1) year period, Buyer and Developer agree on the length, and terms and conditions of an extension of the Required Commercial Operations Date, at the expiration of the initial one (1) year period, Buyer shall either declare a default or waive its right to declare a default pursuant to this Paragraph. Buyer may waive its right to demand payment of the liquidated damages determined in accordance with the liquidated damages provisions of Schedule B (Calculation of Payments).
Willful alteration of or tampering by the Developer or its employees or agents with the Interconnection Facilities without the prior written consent of Buyer, except in situations where such actions are taken to prevent immediate injury, death, or property damage, and the Developer uses its best efforts to provide Buyer with advance notice of the need for such actions.
Abandonment of operation of the Project by the Developer after the Commercial Operations Date without the written consent of the Buyer.
Except when taken for the purpose of merger or reorganization (if such merger or reorganization does not affect the ability of the merged or reorganized entity to perform its obligations under this Agreement), the occurrence of any of the following events:
passage of a resolution by the shareholders of Developer for the winding up of Developer;admission in writing by the Developer of its inability generally to pay its debts as they become due;
appointment of a Liquidator in a proceeding for the winding up of the Developer after notice to the Developer and due hearing; or