Private Wire PPAs are utilized when a power generator supplies electricity directly to a consumer through dedicated private infrastructure, bypassing the public grid. These agreements are particularly relevant for industrial consumers seeking reliable, potentially cheaper power supply, or organizations pursuing renewable energy targets. Under English and Welsh law, these agreements must comply with specific licensing exemptions under the Electricity Act 1989 and related regulations. The Private Wire PPA covers essential elements including supply obligations, pricing, metering, and operational requirements, while addressing the unique aspects of private wire arrangements such as connection infrastructure and maintenance responsibilities.
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1. Parties: Details of the generator and off-taker, including registered addresses
2. Background: Context of the agreement, facility details, and connection arrangements
3. Definitions: Key terms used throughout the agreement
4. Supply Obligations: Core obligations regarding electricity supply and purchase
5. Pricing and Payment: Price structure, billing, and payment terms
6. Metering: Metering arrangements and responsibilities
7. Term and Termination: Duration and termination provisions
1. ROCs and Other Benefits: Treatment of renewable benefits, applicable for renewable generation facilities
2. Construction and Commissioning: Requirements for facility construction, applicable for new build facilities
3. Buy-out Options: Terms for purchasing the generation facility, included when parties want purchase options
1. Facility Description: Technical details of the generation facility
2. Pricing Schedule: Detailed pricing mechanisms and calculations
3. Testing Procedures: Commissioning and performance test requirements
4. Metering Specifications: Technical requirements for metering equipment
5. Operating Parameters: Technical and operational requirements
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