The Power Purchase Contract is a crucial document used in Belgium's energy market to formalize long-term electricity supply arrangements between generators/suppliers and consumers. It addresses the unique aspects of Belgium's three-region federal structure and must comply with both Belgian federal law and EU energy regulations. This agreement type has become increasingly important with the growth of renewable energy projects and corporate procurement of green power. The document typically includes detailed provisions for energy pricing, delivery specifications, measurement procedures, regulatory compliance, and risk allocation. It's particularly relevant for renewable energy projects, industrial consumers seeking stable electricity supply, and corporations pursuing sustainability goals. The agreement must account for Belgium's specific green certificate schemes, regional energy policies, and grid access requirements while ensuring compatibility with EU internal market rules.
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1. Parties: Identification of the power seller and buyer, including registration details and regulatory status
2. Background: Context of the agreement, including facility details and purpose of the contract
3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase, including volume commitments
5. Term and Termination: Contract duration, conditions for renewal, and termination rights
6. Delivery Point and Transfer of Risk: Specification of the electricity delivery point and transfer of title and risk
7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records
8. Price and Payment Terms: Pricing structure, invoicing requirements, and payment procedures
9. Force Majeure: Definition and consequences of force majeure events
10. Representations and Warranties: Standard and specific warranties from both parties
11. Regulatory Compliance: Obligations regarding permits, licenses, and regulatory requirements
12. Dispute Resolution: Procedures for resolving disputes under Belgian law
13. Governing Law: Confirmation of Belgian law as governing law and jurisdiction
1. Green Certificates: Required when the agreement includes trading of green certificates or guarantees of origin
2. Capacity Requirements: Needed when specific capacity obligations are part of the agreement
3. Curtailment Provisions: Required for agreements with renewable energy sources
4. Change in Law: Important for long-term PPAs to address regulatory changes
5. Credit Support: Required when parties agree on security or credit requirements
6. Grid Connection: Necessary when the agreement includes responsibilities for grid connection
7. Performance Guarantees: Required when specific performance levels are guaranteed
8. Trading and Resale Rights: Needed when electricity trading or resale is permitted
1. Facility Description: Technical specifications of the generation facility
2. Pricing Mechanism: Detailed pricing calculations and adjustments
3. Operating Parameters: Technical and operational requirements
4. Metering Specifications: Detailed metering requirements and procedures
5. Form of Direct Agreement: Standard form for direct agreements with lenders
6. Performance Security: Forms and requirements for any required security
7. Contact Details: List of authorized representatives and contact information
8. Grid Connection Details: Technical specifications for grid connection
9. Planned Maintenance Schedule: Schedule of planned maintenance periods
10. Testing and Commissioning Procedures: Procedures for facility testing and commissioning
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