The Corporate PPA Renewable (Energy) agreement is essential for businesses in South Africa seeking to secure reliable, sustainable power supply while managing electricity costs and meeting environmental commitments. This document becomes particularly relevant in the context of South Africa's energy challenges, including load shedding and increasing grid electricity costs. The agreement enables direct procurement of renewable energy from independent power producers, providing a framework for long-term energy security. It addresses crucial elements such as energy pricing, delivery obligations, grid connection requirements, and performance standards, while ensuring compliance with South African energy regulations, environmental laws, and corporate requirements. The document is designed to protect both the power producer's and corporate buyer's interests while facilitating project financing and operational efficiency.
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1. Parties: Identification of the power producer and corporate purchaser, including registration details
2. Background: Context of the agreement, including facility details and purpose of the PPA
3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchy of documents
4. Conditions Precedent: Prerequisites including regulatory approvals, grid connection, and construction completion
5. Term and Duration: Agreement duration, renewal options, and early termination rights
6. Sale and Purchase Obligations: Core obligations for energy supply and purchase, including minimum take-or-pay provisions
7. Facility and Connection Requirements: Technical specifications, connection points, and compliance requirements
8. Metering and Testing: Metering arrangements, testing procedures, and dispute resolution for measurements
9. Price and Payment Terms: Tariff structure, adjustment mechanisms, invoicing, and payment terms
10. Operation and Maintenance: Maintenance schedules, performance standards, and reporting requirements
11. Force Majeure: Definition of force majeure events and consequences
12. Default and Termination: Events of default, cure periods, and termination procedures
13. Liability and Indemnification: Liability limitations, indemnities, and insurance requirements
14. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Environmental Attributes: Allocation of carbon credits and green certificates - include if parties wish to trade these separately
2. Change in Law: Mechanism for addressing regulatory changes - important for longer-term PPAs
3. Storage Provisions: Include if the facility includes battery or other storage systems
4. Refinancing Rights: Include if producer requires flexibility for future refinancing
5. Local Content Requirements: Include if project must meet specific local content thresholds
6. Wheeling Arrangements: Include if power must be wheeled through third-party transmission systems
7. Direct Agreement Rights: Include if required by producer's lenders
8. Black Economic Empowerment: Include if specific BEE requirements apply to the project
1. Facility Description: Detailed technical specifications of the renewable energy facility
2. Testing and Commissioning Procedures: Procedures for initial and periodic testing
3. Tariff and Payment Calculations: Detailed pricing formulae and adjustment mechanisms
4. Performance Standards: Minimum performance requirements and liquidated damages
5. Operating Procedures: Detailed operational protocols and procedures
6. Metering Specifications: Technical requirements for metering equipment
7. Grid Connection Details: Connection point specifications and requirements
8. Form of Direct Agreement: Standard form for lender direct agreements
9. Insurance Requirements: Minimum insurance coverage requirements
10. Environmental Management Plan: Environmental compliance requirements and procedures
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