Utility PPA Template for United Arab Emirates

The Utility PPA is a crucial agreement in the UAE's energy sector, used to establish long-term arrangements between power producers and utility companies for the sale and purchase of electricity at a utility scale. This document type is essential when implementing large-scale power generation projects in the UAE, whether conventional or renewable energy. It must comply with the UAE's federal energy regulations and specific emirate-level requirements, while also aligning with the UAE Energy Strategy 2050. The agreement typically includes detailed provisions for technical specifications, operational requirements, pricing mechanisms, performance standards, and risk allocation. Used primarily for utility-scale projects, the document requires careful consideration of both technical and commercial aspects, while ensuring compliance with local regulatory frameworks and market conditions.

1. Parties: Identification of the power producer and the utility purchaser, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, including project overview, relevant licenses, and regulatory framework

3. Definitions: Comprehensive definitions of technical, financial, and legal terms used throughout the agreement

4. Term and Conditions Precedent: Duration of the agreement and conditions that must be satisfied before the agreement becomes effective

5. Sale and Purchase Obligations: Core obligations regarding electricity generation, delivery, and purchase commitments

6. Delivery Point and Title: Specification of the delivery point and transfer of title to the electricity

7. Metering and Testing: Requirements for measuring delivered electricity and testing procedures

8. Payment Terms: Tariff structure, billing procedures, and payment mechanisms

9. Performance Security: Requirements for performance bonds or other security instruments

10. Operation and Maintenance: Standards for facility operation and maintenance obligations

11. Force Majeure: Definition and consequences of force majeure events

12. Default and Termination: Events of default, cure periods, and termination rights

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

15. Confidentiality: Obligations regarding confidential information

16. Notices: Procedures for formal communications between parties