Document background
The Power Offtake Agreement is a crucial contract in the Philippine energy sector, used to establish long-term arrangements between power generators and purchasers. This agreement type gained particular importance following the implementation of EPIRA in 2001, which restructured the Philippine power sector to promote competition and improve supply reliability. The document is essential for power project financing, typically running for 15-25 years, and must comply with ERC regulations and DOE guidelines. It details all aspects of the power purchase arrangement, including technical specifications, pricing mechanisms, delivery obligations, and operational requirements. The agreement is fundamental for both conventional and renewable energy projects, requiring careful consideration of grid connection requirements, regulatory compliance, and risk allocation between parties. A Power Offtake Agreement typically serves as a key bankability document for project finance and helps secure long-term revenue streams for power projects.
