The Direct Power Purchase Agreement (PPA) is essential for entities in Qatar seeking to secure dedicated electricity supply directly from power generators. This document is particularly relevant in the context of Qatar's developing energy market and its push toward energy efficiency and diversification. It is used when a business or organization wants to establish a long-term power supply arrangement, often with specific requirements for capacity, availability, or renewable sources. The agreement must align with Qatar's electricity sector regulations and Kahramaa's technical requirements while addressing commercial terms, risk allocation, and performance standards. This type of agreement has become increasingly important as Qatar promotes private sector participation in its power sector and supports its sustainability goals under Qatar National Vision 2030.
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1. Parties: Identification of the power generator/seller and the purchaser
2. Background: Context of the agreement, including facility details and purpose
3. Definitions: Defined terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase commitments
5. Term and Effectiveness: Duration of the agreement and conditions precedent
6. Delivery Point and Title: Specification of where electricity will be delivered and transfer of ownership
7. Metering and Testing: Requirements for measuring electricity delivery and quality
8. Price and Payment: Pricing structure, billing, and payment terms
9. Performance Security: Security deposits or guarantees required from parties
10. Operation and Maintenance: Standards for facility operation and maintenance
11. Force Majeure: Events excusing performance and consequences
12. Default and Termination: Events of default, remedies, and termination rights
13. Liability and Indemnification: Allocation of risks and liability between parties
14. Dispute Resolution: Process for resolving disputes under Qatari law
15. Governing Law: Confirmation of Qatar law as governing law
16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment
1. Renewable Energy Credits: Required if the agreement involves renewable energy and associated credits
2. Grid Connection: Required if the seller is responsible for grid connection arrangements
3. Construction and Development: Required if the generating facility is not yet operational
4. Insurance: Detailed insurance requirements, often separate section for larger projects
5. Environmental Attributes: Required if carbon credits or other environmental benefits are being transferred
6. Step-in Rights: Required for projects with project financing
7. Local Content: Required if there are Qatari local content requirements to be met
1. Facility Description: Technical details of the generating facility
2. Testing and Commissioning Procedures: Detailed procedures for facility testing and commissioning
3. Electricity Specifications: Technical specifications for electricity delivery
4. Pricing Schedule: Detailed pricing calculations and adjustments
5. Metering Specifications: Technical requirements for metering equipment
6. Form of Performance Security: Template for required guarantees or security instruments
7. Operating Procedures: Detailed procedures for day-to-day operations
8. Grid Connection Requirements: Technical specifications for grid connection
9. Calculation of Liquidated Damages: Formulas and procedures for calculating damages
10. Form of Direct Agreement: Template agreement for lenders if project financed
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