Commercial Power Purchase Agreements are essential instruments in Singapore's liberalized electricity market, enabling direct electricity trading between generators and commercial consumers. These agreements are particularly relevant when businesses seek to secure long-term electricity supply at predictable prices or wish to source power from specific generation sources, including renewable energy facilities. The document must comply with Singapore's regulatory framework, including the Electricity Act 2001 and EMA guidelines, while addressing commercial aspects such as pricing mechanisms, delivery obligations, and risk allocation. The agreement structure reflects Singapore's unique energy market characteristics and regulatory requirements.
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1. Parties: Identification and details of contracting parties
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used tHRoughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase
5. Pricing and Payment Terms: Price structure, billing, and payment mechanisms
6. Term and Termination: Duration and termination provisions
7. Metering and Measurement: Requirements for measuring electricity supply
8. Force Majeure: Provisions for unforeseen circumstances
9. Dispute Resolution: Procedures for resolving disputes
1. Environmental Attributes: Handling of renewable energy certificates and carbon credits (used when dealing with renewable energy sources)
2. Construction and Development: Requirements for new generation facilities (used when PPA involves new facility construction)
3. Interconnection: Grid connection requirements (used when direct grid connection is part of scope)
4. Performance Security: Security deposit or guarantee requirements (used when credit risk mitigation is needed)
1. Technical Specifications: Detailed technical requirements and parameters
2. Pricing Schedule: Detailed pricing mechanisms and calculations
3. Performance Standards: Required operational standards and metrics
4. Metering Specifications: Technical requirements for metering equipment
5. Form of Performance Security: Template for security instruments if required
6. Operating Procedures: Detailed operational protocols and procedures
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