The Sleeve Power Purchase Agreement is specifically designed for use in the Belgian energy market where direct power purchase agreements between generators and consumers require an intermediary utility provider. This document is typically used when a renewable energy producer wishes to sell electricity to a specific end consumer but requires a licensed utility to facilitate the transaction due to regulatory requirements or operational constraints. The agreement incorporates Belgium's complex regulatory framework, including federal energy laws, regional regulations, and EU directives. It addresses critical elements such as physical electricity delivery, financial settlements, balancing responsibilities, and green certificate transfers. The document is particularly relevant in the context of Belgium's growing renewable energy sector and the increasing demand for corporate renewable energy sourcing.
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1. Parties: Identification of the Producer, Sleeve Provider (utility/trader), and End Consumer
2. Background: Context of the agreement, facility details, and purpose of the sleeve arrangement
3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding electricity sale, purchase, and sleeve services
5. Delivery Point and Title Transfer: Specification of electricity delivery points and transfer of ownership
6. Price and Payment: Pricing structure, payment terms, and calculation methodologies
7. Metering and Documentation: Requirements for electricity metering, data sharing, and verification
8. Balancing Responsibilities: Allocation of balancing obligations and costs between parties
9. Force Majeure: Events constituting force majeure and consequential rights and obligations
10. Term and Termination: Contract duration, renewal provisions, and termination circumstances
11. Representations and Warranties: Standard and specific warranties from each party
12. Governing Law and Disputes: Belgian law governance and dispute resolution procedures
1. Green Certificates and Guarantees of Origin: Include when green certificates or GoOs are part of the transaction scope
2. Credit Support: Include when parties require security or credit support arrangements
3. Change in Law: Include when parties want specific provisions for regulatory changes
4. Grid Connection and Curtailment: Include for agreements involving direct grid connection obligations
5. Performance Guarantees: Include when specific performance levels are guaranteed
6. Insurance: Include when specific insurance requirements are needed
7. Forecasting and Scheduling: Include for agreements requiring detailed production forecasting
1. Facility Description: Technical specifications of the generation facility
2. Pricing Mechanism: Detailed pricing calculations and adjustment mechanisms
3. Operating Parameters: Technical parameters and operational requirements
4. Metering Specifications: Detailed metering requirements and procedures
5. Form of Direct Agreement: Standard form for direct agreements with financiers
6. Communication Protocols: Procedures for operational communications
7. Performance Standards: Technical and operational performance requirements
8. Belgian Regulatory Requirements: Specific compliance requirements under Belgian law
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