The Solar PPA Agreement is a crucial document in renewable energy projects within England and Wales, establishing the commercial and technical framework for selling and purchasing solar-generated electricity. It is typically used when a solar power facility wants to secure a long-term buyer for its output, or when an organization wants to purchase renewable energy directly from a generator. The agreement covers essential aspects including pricing, delivery terms, performance guarantees, and compliance with UK energy regulations. This document is fundamental for project financing and provides certainty for both generators and purchasers in the renewable energy market.
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1. Parties: Details of the Generator and Buyer, including registered addresses and company numbers
2. Background: Context of the agreement including facility details and purpose
3. Definitions: Key terms used throughout the agreement including technical, commercial and legal definitions
4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including delivery points and exclusivity provisions
5. Pricing and Payment: Price calculation methodology, invoicing procedures, payment terms and dispute resolution for payments
6. Term and Termination: Duration of agreement, conditions precedent, extension options and termination rights
7. Metering and Reporting: Requirements for measuring and reporting electricity generation, including metering specifications
8. Force Majeure: Definition of force majeure events and consequences
9. Representations and Warranties: Standard and specific warranties from both parties
10. Insurance: Required insurance coverage and maintenance
11. Assignment and Change of Control: Restrictions and conditions for transfer of rights or change in ownership
12. Governing Law and Disputes: Choice of law, jurisdiction and dispute resolution procedures
1. Green Certificates: Provisions for handling REGOs (Renewable Energy Guarantees of Origin) or other environmental attributes
2. Construction and Commissioning: Requirements for facility construction and completion, including milestone dates and liquidated damages
3. Battery Storage: Terms relating to energy storage systems, including operating parameters and additional revenue streams
4. Grid Connection: Responsibilities and requirements for grid connection and compliance
5. Performance Guarantees: Minimum performance requirements and remedies for shortfall
1. Facility Description: Technical specifications of the solar facility including location, capacity, and equipment details
2. Pricing Schedule: Detailed pricing mechanisms, calculations and adjustment procedures
3. Testing Procedures: Commissioning and performance test requirements and procedures
4. Form of Direct Agreement: Standard form agreement between lenders, generator and buyer
5. Operating Parameters: Technical operating requirements, maintenance procedures and performance standards
6. Metering Specifications: Detailed requirements for metering equipment and procedures
7. Form of Performance Security: Template for any required performance bonds or guarantees
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