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Physical Power Purchase Agreement

Physical Power Purchase Agreement Template for Netherlands

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Key Requirements PROMPT example:

Physical Power Purchase Agreement

"I need a Physical Power Purchase Agreement under Dutch law for a 50MW solar plant in Rotterdam, with delivery starting January 2025 to a large industrial customer, including provisions for battery storage and curtailment rights."

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Document background
The Physical Power Purchase Agreement is essential for businesses engaging in direct electricity supply arrangements in the Netherlands. It is commonly used when a power generator wishes to sell electricity directly to an end-user or trader, with physical delivery through the Dutch grid infrastructure. The agreement details all aspects of the power supply relationship, including technical specifications, delivery obligations, pricing mechanisms, and risk allocation. This document type has gained increased importance with the growth of renewable energy projects and corporate sustainability initiatives in the Netherlands. It must comply with Dutch energy regulations, including the Electricity Act 1998 and Grid Code, while also considering EU energy market rules. The agreement is particularly relevant for long-term power supply arrangements and typically includes provisions for grid connection, metering, balancing responsibility, and operational procedures specific to the Dutch electricity market.
Suggested Sections

1. Parties: Identification of the power producer/seller and the buyer/offtaker, including registration details

2. Background: Context of the agreement, including facility details and parties' objectives

3. Definitions: Defined terms used throughout the agreement, including technical and market-specific terminology

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including delivery point and exclusivity provisions

5. Facility and Production Requirements: Specifications of the generation facility and production commitments

6. Delivery and Metering: Requirements for physical delivery, metering arrangements, and grid connection

7. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures

8. Grid Connection and Balancing: Responsibilities for grid connection, maintenance, and balancing requirements

9. Force Majeure: Events constituting force majeure and consequences

10. Term and Termination: Duration of agreement, renewal options, and termination rights

11. Representations and Warranties: Standard and specific warranties from both parties

12. Liability and Indemnification: Allocation of risks and liability limitations

13. Confidentiality: Protection of confidential information

14. Governing Law and Disputes: Choice of Dutch law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Sustainability Requirements: For green PPAs: specifications regarding renewable energy certificates and sustainability reporting

2. Development and Construction: For new facilities: obligations regarding facility construction and development milestones

3. Storage Provisions: If applicable: terms relating to energy storage facilities and operations

4. Curtailment: If relevant: procedures and compensation for curtailment events

5. Market Changes: For long-term PPAs: mechanism to address regulatory or market structure changes

6. Credit Support: If required: parent company guarantees, bank guarantees, or other security arrangements

7. Insurance: If specific insurance requirements are needed beyond standard coverage

Suggested Schedules

1. Facility Description: Technical specifications of the generation facility

2. Pricing Mechanism: Detailed pricing calculations, adjustments, and examples

3. Operating Procedures: Detailed procedures for day-to-day operations and communications

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

5. Performance Specifications: Minimum performance requirements and testing procedures

6. Form of Direct Agreement: Standard form for lender direct agreement if project financed

7. Grid Connection Details: Technical specifications for grid connection

8. Form of Guarantees: Templates for any required parent company or bank guarantees

9. Commissioning Tests: If new facility: required tests and acceptance criteria

10. Contact Details: List of key contacts and authorized representatives

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
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Relevant Industries

Energy & Utilities

Renewable Energy

Manufacturing

Industrial Production

Data Centers

Commercial Real Estate

Agriculture

Chemical Industry

Food & Beverage

Mining

Transportation

Relevant Teams

Legal

Commercial

Energy Trading

Risk Management

Finance

Operations

Technical

Procurement

Sustainability

Compliance

Treasury

Project Development

Asset Management

Relevant Roles

Energy Trading Manager

Commercial Director

Legal Counsel

Energy Procurement Manager

Sustainability Officer

Chief Financial Officer

Risk Manager

Technical Operations Manager

Facility Manager

Business Development Director

Contract Manager

Grid Connection Manager

Energy Markets Analyst

Compliance Officer

Project Finance 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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