The Prepaid Power Purchase Agreement is utilized when parties seek to establish a long-term electricity supply arrangement with upfront payment terms. This structure provides generators with immediate capital while giving purchasers price certainty and supply security. Under English and Welsh law, these agreements must comply with the Electricity Act 1989 and subsequent energy legislation, while incorporating necessary consumer protections and regulatory requirements. The document typically includes detailed technical specifications, pricing mechanisms, and delivery terms.
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1. Parties: Identification and details of the contracting parties including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, project overview, and objectives of the prepaid power purchase arrangement
3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement
4. Supply Obligations: Core obligations regarding power supply, delivery points, and supply specifications
5. Payment Terms: Prepayment structure, pricing mechanisms, invoicing, and payment procedures
6. Metering and Recording: Requirements for measuring, recording, and verifying power supply
7. Term and Termination: Agreement duration, renewal provisions, and termination rights
8. Force Majeure: Events constituting force majeure and their consequences
9. Governing Law and Disputes: Applicable law, jurisdiction, and dispute resolution procedures
1. Green Certificates: Provisions for renewable energy certificates and environmental attributes when power source is renewable
2. Credit Support: Additional financial security arrangements and credit requirements based on assessment
3. Change in Law: Provisions addressing regulatory changes and their impact on long-term agreements
4. Grid Connection: Terms relating to grid connection and compliance when relevant to the project
1. Technical Specifications: Detailed technical requirements, parameters, and performance standards
2. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment provisions
3. Metering Specifications: Technical details of metering arrangements and protocols
4. Form of Direct Agreement: Standard form for direct agreements with financiers and relevant third parties
5. Testing and Commissioning Procedures: Requirements and procedures for initial testing and commissioning
6. Operating Procedures: Detailed procedures for day-to-day operations and maintenance
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