The Energy Storage PPA is essential for projects involving grid-scale energy storage facilities in England and Wales. This agreement type has emerged as storage technologies become increasingly crucial for grid stability and renewable energy integration. The Energy Storage PPA addresses specific operational characteristics of storage facilities, including state of charge management, round-trip efficiency, and multiple charging/discharging cycles. It incorporates requirements from UK electricity market regulations and provides commercial frameworks for various revenue streams including arbitrage, ancillary services, and capacity market participation.
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1. Parties: Identification and details of contracting parties including full legal names, registered addresses, and company numbers
2. Background: Context of the agreement, including facility description, purpose of the agreement, and relevant regulatory context
3. Definitions: Comprehensive definitions of technical and legal terms used throughout the agreement
4. Facility Description: Technical specifications and characteristics of the storage facility including capacity, response times, and location
5. Operating Parameters: Detailed operating conditions, minimum and maximum capacity requirements, availability requirements, and performance standards
6. Testing and Commissioning: Requirements for initial testing, periodic testing, and performance verification procedures
7. Metering and Communications: Requirements for metering equipment, data collection, and communications protocols
8. Payment Terms: Pricing structure, payment calculations, invoicing procedures, and payment timelines
9. Performance Security: Requirements for performance bonds, parent company guarantees, or other security arrangements
10. Term and Termination: Contract duration, renewal provisions, termination rights, and consequences of termination
11. Force Majeure: Definition of force majeure events and their consequences
12. Liability and Indemnification: Allocation of risks, liability caps, and indemnification obligations
1. Capacity Market Provisions: Terms relating to Capacity Market participation, including obligations and revenue sharing arrangements
2. Ancillary Services: Terms governing the provision of additional grid services such as frequency response or voltage control
3. Development Conditions: Construction milestones, commissioning requirements, and conditions precedent for facilities not yet operational
4. Grid Connection: Specific provisions relating to grid connection requirements and responsibilities
5. Revenue Stacking: Terms governing multiple revenue streams and their interaction
1. Technical Specifications: Detailed technical parameters including capacity, efficiency, response times, and degradation limits
2. Testing Procedures: Detailed testing protocols for commissioning and ongoing performance verification
3. Operating Procedures: Step-by-step operational procedures, maintenance requirements, and emergency protocols
4. Pricing Schedule: Detailed pricing formulae, adjustment mechanisms, and worked examples
5. Metering Requirements: Technical specifications for metering equipment and data validation procedures
6. Form of Performance Security: Template forms for required security instruments
7. Communications Protocol: Detailed procedures for operational communications and data exchange
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