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Bilateral Power Purchase Agreement

Bilateral Power Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

Bilateral Power Purchase Agreement

"I need a Bilateral Power Purchase Agreement for a 50MW solar power plant in Sabah, Malaysia, with commercial operations starting March 2025, including specific provisions for renewable energy certificates and grid connection requirements."

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Document background
The Bilateral Power Purchase Agreement (PPA) is a fundamental contract in Malaysia's energy sector, used when an independent power producer wishes to sell electricity to a utility or large consumer. This agreement is essential for power project development and financing, typically spanning 20-25 years. It must comply with Malaysian energy regulations, including the Electricity Supply Act 1990 and Energy Commission Act 2001, while addressing specific requirements of the Malaysian power market. The document covers crucial aspects such as power purchase commitments, pricing mechanisms, technical standards, operational procedures, and risk allocation. PPAs are particularly important in Malaysia's evolving energy landscape, where there is increasing emphasis on renewable energy integration and energy security.
Suggested Sections

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

2. Background: Context of the agreement, including facility details, relevant licenses, and purpose of the agreement

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

4. Sale and Purchase Obligations: Core obligations of both parties regarding the sale and purchase of electricity

5. Term and Effective Date: Duration of the agreement, including conditions precedent and effective date

6. Facility Requirements: Technical specifications and requirements for the generating facility

7. Operating Procedures: Protocols for day-to-day operations, dispatch, and maintenance

8. Metering and Testing: Requirements for measuring and verifying electricity delivery

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

10. Force Majeure: Events excusing performance and procedures for handling force majeure situations

11. Default and Termination: Events of default, cure periods, and termination procedures

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

13. Insurance: Required insurance coverage for both parties

14. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

15. Governing Law: Specification of Malaysian law as governing law and jurisdiction

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

Optional Sections

1. Renewable Energy Provisions: Required for renewable energy facilities, including renewable energy certificates and environmental attributes

2. Interconnection Requirements: Needed when the agreement must address specific grid connection requirements

3. Capacity Payments: Used when the agreement includes separate payments for available capacity

4. Fuel Supply Arrangements: Required for thermal power plants where fuel supply coordination is necessary

5. Change in Law Provisions: Detailed provisions for handling regulatory changes when significant regulatory evolution is expected

6. Carbon Credits: Required when dealing with clean energy projects eligible for carbon credits

7. Government Guarantees: Needed when government backing is required for the power purchaser's obligations

8. Local Content Requirements: Required when specific local content obligations must be met

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of the generating facility

2. Testing Procedures: Procedures for conducting acceptance and performance tests

3. Tariff and Payment Calculations: Detailed formulas and mechanisms for calculating payments

4. Operating Characteristics: Specific operational parameters and requirements

5. Metering Requirements: Detailed specifications for metering equipment and procedures

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

7. Interconnection Specifications: Technical requirements for grid connection

8. Annual Operating Plan Template: Format for required operational planning documents

9. Emergency Procedures: Detailed procedures for handling emergency situations

10. Environmental Requirements: Specific environmental compliance obligations and standards

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

Infrastructure

Project Finance

Industrial Manufacturing

Environmental Services

Relevant Teams

Legal

Operations

Commercial

Finance

Regulatory Affairs

Technical Services

Risk Management

Environmental Compliance

Business Development

Project Development

Energy Trading

Grid Operations

Procurement

Corporate Strategy

Relevant Roles

Chief Executive Officer

Power Plant Manager

Energy Trading Director

Legal Counsel

Commercial Director

Technical Operations Manager

Regulatory Compliance Officer

Finance Director

Project Development Manager

Risk Manager

Environmental Compliance Manager

Grid Connection Engineer

Contract Administrator

Business Development Director

Energy Policy Advisor

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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