The Energy Management Agreement is a specialized contract used in Indonesia when a facility owner engages professional energy management services to optimize energy consumption and reduce operational costs. This document is essential for implementing energy efficiency projects in compliance with Indonesian energy regulations, particularly for facilities that consume more than 6,000 TOE (tonnes of oil equivalent) per year. The agreement typically includes detailed technical specifications, performance guarantees, measurement and verification protocols, and financial arrangements including shared savings mechanisms. It addresses key aspects such as baseline energy consumption, improvement targets, implementation methodologies, and risk allocation, while ensuring compliance with Indonesian regulatory requirements including environmental permits and energy manager certifications. The document is particularly relevant in the context of Indonesia's national energy efficiency targets and the government's push for sustainable industrial development.
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1. Parties: Identification of the Energy Management Company (ESCO) and the facility owner/client
2. Background: Context of the agreement, including facility description and energy management objectives
3. Definitions: Definitions of technical terms, performance metrics, and contract-specific terminology
4. Scope of Services: Detailed description of energy management services to be provided
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Baseline Energy Consumption: Establishment and adjustment of energy consumption baseline
7. Performance Guarantees: Specific energy savings targets and performance guarantees
8. Implementation and Timeline: Project implementation phases and milestone dates
9. Payment Terms: Fee structure, payment schedule, and energy savings sharing mechanism
10. Monitoring and Verification: Procedures for measuring and verifying energy savings
11. Maintenance and Operations: Responsibilities for equipment maintenance and operational procedures
12. Compliance Requirements: Compliance with Indonesian energy and environmental regulations
13. Risk Allocation: Distribution of risks between parties
14. Insurance and Liability: Insurance requirements and limitation of liability provisions
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes under Indonesian law
17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Equipment Ownership: Used when the agreement includes installation of new equipment, defining ownership during and after the contract
2. Financing Arrangements: Include when specific financing mechanisms or third-party funding is involved
3. Training and Capacity Building: Optional section for agreements including staff training components
4. Carbon Credits: Include when parties agree to share benefits from carbon credits or environmental certificates
5. Facility Access and Security: Detailed access protocols for sensitive or high-security facilities
6. Data Protection: Include when handling sensitive operational or personal data
7. Force Majeure for Grid Issues: Specific force majeure provisions for areas with unstable grid supply
1. Schedule 1 - Facility Description: Detailed description of the facility and energy-consuming systems
2. Schedule 2 - Baseline Calculation Methodology: Technical methodology for calculating and adjusting energy baseline
3. Schedule 3 - Energy Saving Measures: Detailed description of proposed energy saving measures and technologies
4. Schedule 4 - Performance Measurement Protocol: Specific procedures and standards for measuring energy savings
5. Schedule 5 - Fee Calculation: Detailed methodology for calculating fees and savings share
6. Schedule 6 - Implementation Timeline: Detailed project implementation schedule and milestones
7. Schedule 7 - Equipment Specifications: Technical specifications for any new equipment to be installed
8. Schedule 8 - Maintenance Procedures: Detailed maintenance protocols and schedules
9. Appendix A - Required Permits and Licenses: List of required regulatory approvals and permits
10. Appendix B - Key Personnel: List of key personnel from both parties and their roles
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