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Power Sales Agreement Template for Philippines

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Key Requirements PROMPT example:

Power Sales Agreement

"I need a Power Sales Agreement for a 50MW solar power plant in Luzon, Philippines, selling to an industrial customer, with operations starting March 2025 and including specific provisions for renewable energy credits and carbon offsetting."

Document background
Power Sales Agreements (PSAs) are fundamental contracts in the Philippine energy sector, regulated under the Electric Power Industry Reform Act (EPIRA) of 2001 and subsequent Energy Regulatory Commission (ERC) regulations. These agreements are used when establishing long-term power supply arrangements between generators/suppliers and buyers, whether they are distribution utilities, electric cooperatives, or large industrial consumers. A PSA typically includes detailed provisions for power capacity commitments, pricing structures, technical requirements, operational procedures, and regulatory compliance mechanisms. The document must align with Philippine energy laws and regulations, including requirements for competitive selection process, rate-setting methodologies, and consumer protection provisions. PSAs are particularly crucial in the Philippine context due to the country's growing energy demands and the government's push for energy security and sustainability.
Suggested Sections

1. Parties: Identification of the power supplier/generator and the buyer/off-taker, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, including relevant regulatory framework and purpose of the power supply arrangement

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

4. Supply Obligations: Core obligations regarding power supply, including capacity, availability, and delivery points

5. Term and Effectiveness: Duration of the agreement, conditions precedent, and effectiveness date

6. Price and Payment Terms: Detailed pricing structure, payment mechanisms, and billing procedures

7. Metering and Testing: Requirements for power measurement, testing procedures, and meter accuracy

8. Operating Procedures: Day-to-day operational requirements, dispatch protocols, and maintenance schedules

9. Force Majeure: Events constituting force majeure and their consequences

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

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

12. Representations and Warranties: Standard representations and regulatory compliance warranties

13. Assignment and Transfer: Rules regarding transfer of rights and obligations

14. Confidentiality: Protection of confidential information

15. Governing Law: Application of Philippine law and jurisdiction

Optional Sections

1. Renewable Energy Provisions: Required when the power source is renewable, addressing specific requirements under the Renewable Energy Act

2. Grid Connection: Needed when the agreement includes responsibilities for grid connection and maintenance

3. Carbon Credits: Included when the project generates carbon credits or environmental attributes

4. Emergency Protocols: Detailed procedures for emergency situations, required for critical power supply agreements

5. Change in Law Provisions: Specific provisions for handling regulatory changes, important for long-term agreements

6. Security Package: Required when additional financial security or performance bonds are needed

7. Step-in Rights: Included when lenders require rights to take over the project

8. Local Community Benefits: Required for projects needing social license to operate

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of the power facility and supply requirements

2. Pricing Formula and Calculations: Detailed pricing mechanisms, including base price, adjustments, and calculations

3. Testing and Commissioning Procedures: Detailed procedures for initial and periodic testing

4. Operating Procedures Manual: Detailed operational protocols and procedures

5. Interconnection Requirements: Technical specifications for grid connection

6. Performance Standards: Detailed performance metrics and compliance requirements

7. Forms of Security: Templates for performance bonds or other security instruments

8. ERC Compliance Documents: Required regulatory compliance documentation

9. Permits and Licenses: List of required permits and copies of existing authorizations

10. Emergency Contact Information: List of key personnel and emergency contacts

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































































Clauses








































Relevant Industries

Energy Generation

Power Distribution

Utilities

Manufacturing

Industrial Processing

Mining

Commercial Real Estate

Renewable Energy

Infrastructure

Heavy Industry

Relevant Teams

Legal

Regulatory Affairs

Commercial Operations

Energy Trading

Technical Operations

Risk Management

Finance

Procurement

Business Development

Engineering

Compliance

Operations

Relevant Roles

Energy Trading Manager

Power Plant Manager

Legal Counsel

Regulatory Compliance Officer

Commercial Operations Director

Chief Technical Officer

Risk Manager

Contract Administrator

Business Development Manager

Energy Operations Manager

Chief Financial Officer

Procurement Manager

Generation Planning Engineer

Transmission Planning Engineer

Energy Economics Analyst

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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