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Power Supply Agreement
"I need a Power Supply Agreement under Saudi Arabian law for supplying 50MW of electricity to an industrial facility in Jubail Industrial City, with operations scheduled to commence in March 2025, including provisions for emergency backup power and step-in rights for our lenders."
1. Parties: Identification of the power supplier and purchaser, including their legal status and registration details
2. Background: Context of the agreement, including project overview and parties' objectives
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Term and Effectiveness: Duration of the agreement, including conditions precedent and effective date
5. Supply Obligations: Core obligations regarding power supply, including quantity, quality, and availability requirements
6. Connection and Delivery Points: Specifications of power delivery points and connection responsibilities
7. Metering and Testing: Requirements for power measurement, testing procedures, and meter maintenance
8. Pricing and Payment Terms: Tariff structure, billing procedures, and payment terms
9. Operating Procedures: Day-to-day operational requirements and procedures
10. Maintenance and Outages: Planned and unplanned maintenance procedures and outage management
11. Force Majeure: Events constituting force majeure and consequent rights and obligations
12. Representations and Warranties: Standard representations and warranties from both parties
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Insurance: Required insurance coverage for both parties
15. Default and Termination: Events of default, remedies, and termination provisions
16. Dispute Resolution: Procedures for resolving disputes, including applicable law and jurisdiction
17. Confidentiality: Protection of confidential information
18. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment
1. Renewable Energy Provisions: Specific provisions for renewable energy sources, required when the power supply includes renewable energy
2. Environmental Compliance: Detailed environmental obligations, needed when specific environmental requirements apply
3. Security Requirements: Provisions for performance security or guarantees, included when required by either party
4. Local Content Requirements: Provisions addressing Saudi Arabia's local content requirements, needed for certain project types
5. Grid Connection Requirements: Specific provisions for grid connection, required when direct grid connection is part of the scope
6. Change in Law: Specific provisions dealing with regulatory changes, included for long-term agreements
7. Step-in Rights: Rights of lenders or third parties to step in, included when project financing is involved
8. Capacity Requirements: Specific capacity obligations and penalties, included for capacity-based agreements
1. Technical Specifications: Detailed technical requirements for power supply
2. Testing and Commissioning Procedures: Procedures for initial and periodic testing
3. Metering Specifications: Detailed requirements for metering equipment and procedures
4. Operating Parameters: Specific operational requirements and standards
5. Tariff Structure and Calculations: Detailed pricing mechanisms and calculations
6. Performance Security Format: Template for any required performance security
7. Interface Matrix: Definition of responsibilities between parties
8. Emergency Procedures: Procedures for handling emergency situations
9. Key Performance Indicators: Specific performance metrics and standards
10. Required Permits and Approvals: List of required regulatory approvals and permits
Authors
Energy & Utilities
Manufacturing & Industrial
Infrastructure
Mining
Oil & Gas
Real Estate & Construction
Healthcare
Data Centers & Technology
Petrochemicals
Renewable Energy
Legal
Operations
Commercial
Procurement
Technical
Compliance
Project Management
Risk Management
Finance
Facilities Management
Environmental
Business Development
Grid Operations
Regulatory Affairs
Legal Counsel
Energy Operations Manager
Commercial Director
Procurement Manager
Technical Director
Compliance Officer
Project Manager
Contract Manager
Risk Manager
Chief Financial Officer
Facility Manager
Environmental Compliance Manager
Power Plant Manager
Grid Operations Manager
Business Development Director
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