The Green Power Purchase Agreement serves as a crucial instrument in the UAE's transition to renewable energy, aligned with the nation's Energy Strategy 2050. This document is typically used when establishing long-term arrangements between renewable energy producers and power purchasers, whether private entities or government utilities. It encompasses detailed provisions for energy pricing, delivery specifications, environmental attributes, and performance standards, while ensuring compliance with UAE federal laws and emirate-specific regulations. The agreement addresses technical requirements for grid connection, metering, and environmental certification, making it essential for renewable energy project development and corporate sustainability initiatives in the UAE market.
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1. Parties: Identification of the power producer and the purchaser, including full legal names and registration details
2. Background: Context of the agreement, including facility description, project overview, and regulatory framework
3. Definitions: Comprehensive definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of renewable energy, including minimum purchase commitments
5. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights
6. Delivery Point and Title Transfer: Specification of where energy will be delivered and when title/risk transfers
7. Metering and Measurement: Requirements for measuring delivered energy and maintaining metering equipment
8. Price and Payment: Pricing structure, payment terms, and invoicing requirements
9. Environmental Attributes: Ownership and transfer of renewable energy certificates and environmental benefits
10. Performance Standards: Required technical and operational standards for the facility
11. Force Majeure: Definition and consequences of force majeure events
12. Default and Remedies: Events of default and available remedies for each party
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. Confidentiality: Protection of confidential information and trade secrets
15. Representations and Warranties: Standard and specific warranties from each party
1. Construction and Development: Include when the facility is not yet operational, covering construction milestones and requirements
2. Grid Connection: Include when the producer is responsible for grid connection arrangements
3. Credit Support: Include when parties require performance bonds or parent company guarantees
4. Change in Law: Include detailed provisions when regulatory framework is evolving or uncertain
5. Carbon Credits: Include when carbon credits are separately traded or allocated
6. Direct Agreement: Include when project financing is involved, addressing lender's step-in rights
7. Local Content Requirements: Include when required by UAE regulations or government incentives
8. Storage Provisions: Include when energy storage systems are part of the facility
1. Facility Description: Technical specifications of the renewable energy facility
2. Testing and Commissioning Procedures: Detailed procedures for facility testing and commercial operation
3. Performance Specifications: Technical performance requirements and guarantees
4. Pricing Formula: Detailed pricing calculations and adjustment mechanisms
5. Operating Procedures: Day-to-day operational requirements and procedures
6. Form of Performance Security: Template for required performance bonds or guarantees
7. Metering Specifications: Technical requirements for metering equipment
8. Grid Code Requirements: Applicable grid code compliance requirements
9. Environmental Standards: Required environmental compliance standards
10. Form of Direct Agreement: Template agreement for lenders' direct agreement if required
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