This Commercial Solar PPA template is designed for use in the United Arab Emirates where businesses seek to implement solar power solutions as part of their energy strategy. The document is particularly relevant in the context of UAE's Energy Strategy 2050, which aims to increase clean energy contribution to 50% of the total energy mix. The Commercial Solar PPA structures the relationship between solar system providers and commercial energy users, covering installation, operation, maintenance, and energy purchase terms. It includes provisions specific to UAE regulations, including DEWA requirements (for Dubai) or other emirate-specific regulations. The agreement is suitable for commercial and industrial facilities looking to reduce energy costs and carbon footprint through solar power adoption, while ensuring compliance with local regulatory requirements and technical standards.
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1. Parties: Identification of the Provider (solar system owner/operator) and the Purchaser (energy buyer)
2. Background: Context of the agreement, including facility location and project overview
3. Definitions: Defined terms used throughout the agreement, including technical and commercial terms
4. Term and Termination: Duration of the agreement, renewal provisions, and termination circumstances
5. Sale and Purchase Obligations: Core obligations including energy delivery and purchase commitments
6. Price and Payment: Energy rate, billing procedures, payment terms, and price adjustment mechanisms
7. Installation and Commissioning: Requirements and process for system installation and commissioning
8. Operation and Maintenance: Provider's obligations for system operation and maintenance
9. Metering and Monitoring: Requirements for measuring energy production and consumption
10. Performance Guarantees: Guaranteed output levels and related remedies
11. Access Rights: Provider's access rights to the installation site
12. Insurance and Risk: Required insurance coverage and risk allocation
13. Force Majeure: Events excusing performance and related procedures
14. Dispute Resolution: Process for resolving disputes under UAE law
15. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Environmental Attributes: Allocation of renewable energy certificates and carbon credits, if applicable in UAE
2. Grid Connection: Required if system connects to public grid, covering connection requirements and responsibilities
3. Battery Storage: Include if the system includes energy storage components
4. Export Limitations: Include if there are restrictions on exporting power to the grid
5. Buyout Options: Include if purchaser has option to buy the system during or end of term
6. Site Lease Provisions: Include if separate site lease is not used
7. Decomissioning: Include if specific decommissioning requirements are needed
1. System Technical Specifications: Detailed technical specifications of the solar PV system
2. Site Description and Layout: Detailed description and drawings of installation site
3. Energy Price Calculation: Detailed pricing formula and adjustment mechanisms
4. Performance Testing Procedures: Procedures for testing system performance
5. Form of Performance Security: Template for any required performance bonds or guarantees
6. Operating Procedures: Detailed procedures for system operation and maintenance
7. Metering Specifications: Technical requirements for metering equipment
8. Grid Connection Requirements: Technical requirements for grid connection if applicable
9. Form of Direct Agreement: Template for direct agreement with financiers if required
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