The Commercial Power Purchase Agreement (PPA) serves as the primary contractual framework for long-term electricity supply arrangements between power generators and commercial consumers in Canada. This document is essential when businesses seek to secure reliable power supply, potentially at predetermined prices, while possibly meeting sustainability goals through renewable energy sourcing. The agreement must align with both federal energy regulations and specific provincial requirements, as electricity markets in Canada are primarily regulated at the provincial level. The PPA covers crucial aspects including delivery terms, pricing mechanisms, performance guarantees, and risk allocation, while incorporating necessary provisions for environmental attributes and regulatory compliance. It's particularly relevant for businesses with significant electricity consumption seeking to manage their energy costs and supply security.
Commercial Power Purchase Agreement for Canada
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Key Requirements PROMPT example:
Commercial Power Purchase Agreement
"I need a Commercial Power Purchase Agreement for purchasing solar power from a facility in Ontario for my data center operations, starting March 2025, with specific provisions for environmental credits and peak demand management."
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OR
1. Parties: Identification of the power generator/seller and the commercial buyer
2. Background: Context of the agreement, including facility details and parties' objectives
3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase commitments
5. Term and Termination: Duration of the agreement, renewal options, and termination circumstances
6. Price and Payment: Pricing structure, payment terms, and billing procedures
7. Delivery Point and Title: Specification of electricity delivery point and transfer of title
8. Metering: Requirements for measuring and recording electricity delivery
9. Performance Requirements: Performance standards, availability guarantees, and quality requirements
10. Force Majeure: Events excusing performance and related procedures
11. Default and Remedies: Events of default and corresponding remedies
12. Representations and Warranties: Standard and specific warranties from both parties
13. Insurance: Required insurance coverage for both parties
14. Dispute Resolution: Procedures for resolving disputes between parties
15. Confidentiality: Protection of confidential information
16. General Provisions: Standard boilerplate provisions including notices, amendments, and governing law
1. Environmental Attributes: Terms regarding renewable energy credits and environmental attributes, used when the power source is renewable
2. Grid Connection: Terms regarding grid connection responsibilities, used when grid connection is not pre-existing
3. Construction and Development: Terms regarding facility construction, used for projects not yet operational
4. Change in Law: Provisions addressing regulatory changes, important in long-term PPAs
5. Credit Support: Requirements for performance security, used when credit risk is a concern
6. Curtailment: Terms regarding reduction in output, important for renewable energy projects
7. Storage: Provisions for energy storage systems, if applicable
8. Carbon Credits: Allocation of carbon credits or offsets, relevant for certain jurisdictions
9. First Nations Provisions: Specific provisions related to First Nations considerations, where applicable in Canada
1. Facility Description: Detailed technical specifications of the generation facility
2. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustments
3. Operating Parameters: Technical operating specifications and requirements
4. Metering Specifications: Detailed metering requirements and procedures
5. Form of Generation Forecast: Template for generation forecasting reports
6. Performance Testing: Testing procedures and acceptance criteria
7. Form of Performance Security: Template for required security instruments
8. Interconnection Requirements: Technical requirements for grid interconnection
9. Contact Information: Key contacts and notice details for both parties
10. Insurance Requirements: Detailed insurance specifications
11. Form of Generation Report: Template for periodic generation reporting
12. Calculation of Liquidated Damages: Methodology for calculating damages for non-performance
Authors
Relevant legal definitions
Actual Delivered Energy
Agreement
Applicable Law
Available Capacity
Billing Period
Business Day
Canadian Dollar
Capacity
Commercial Operation Date
Confidential Information
Contract Price
Contract Year
Curtailment
Default Rate
Delivery Point
Dispute
Effective Date
Electricity
Environmental Attributes
Event of Default
Facility
Force Majeure Event
Good Industry Practice
Grid
Grid Connection Agreement
Grid Operator
Interconnection Facilities
Invoice
Lender
Letter of Credit
Maintenance Schedule
Market Price
Metering Device
Minimum Delivery Obligation
Operating Parameters
Outage
Performance Security
Point of Interconnection
Project
Prudent Operating Practice
Reactive Power
Renewable Energy Credits
Required Commercial Operation Date
Scheduled Maintenance
Security Interest
Seller's Facilities
System Emergency
Term
Termination Date
Transmission Provider
Transmission System
Agreement
Applicable Law
Available Capacity
Billing Period
Business Day
Canadian Dollar
Capacity
Commercial Operation Date
Confidential Information
Contract Price
Contract Year
Curtailment
Default Rate
Delivery Point
Dispute
Effective Date
Electricity
Environmental Attributes
Event of Default
Facility
Force Majeure Event
Good Industry Practice
Grid
Grid Connection Agreement
Grid Operator
Interconnection Facilities
Invoice
Lender
Letter of Credit
Maintenance Schedule
Market Price
Metering Device
Minimum Delivery Obligation
Operating Parameters
Outage
Performance Security
Point of Interconnection
Project
Prudent Operating Practice
Reactive Power
Renewable Energy Credits
Required Commercial Operation Date
Scheduled Maintenance
Security Interest
Seller's Facilities
System Emergency
Term
Termination Date
Transmission Provider
Transmission System
Clauses
Interpretation
Definitions
Sale and Purchase Obligations
Term and Termination
Conditions Precedent
Delivery Obligations
Price and Payment
Metering
Billing and Settlement
Performance Standards
Testing and Verification
Force Majeure
Representations and Warranties
Covenants
Events of Default
Remedies
Assignment
Change in Law
Dispute Resolution
Confidentiality
Environmental Compliance
Insurance
Credit Support
Liability and Indemnification
Notices
Governing Law
Grid Connection
Operating Requirements
Curtailment Rights
Title and Risk
Regulatory Compliance
Environmental Attributes
Maintenance
Record Keeping
Reporting Requirements
Tax
General Provisions
First Nations Provisions
Facility Development
Testing and Commissioning
Definitions
Sale and Purchase Obligations
Term and Termination
Conditions Precedent
Delivery Obligations
Price and Payment
Metering
Billing and Settlement
Performance Standards
Testing and Verification
Force Majeure
Representations and Warranties
Covenants
Events of Default
Remedies
Assignment
Change in Law
Dispute Resolution
Confidentiality
Environmental Compliance
Insurance
Credit Support
Liability and Indemnification
Notices
Governing Law
Grid Connection
Operating Requirements
Curtailment Rights
Title and Risk
Regulatory Compliance
Environmental Attributes
Maintenance
Record Keeping
Reporting Requirements
Tax
General Provisions
First Nations Provisions
Facility Development
Testing and Commissioning
Relevant Industries
Energy & Utilities
Manufacturing
Commercial Real Estate
Data Centers
Mining
Industrial Processing
Retail
Healthcare
Education
Agriculture
Telecommunications
Relevant Teams
Legal
Procurement
Operations
Finance
Risk Management
Sustainability
Facilities Management
Commercial
Environmental Compliance
Technical Operations
Relevant Roles
General Counsel
Energy Procurement Manager
Sustainability Director
Chief Financial Officer
Commercial Director
Operations Manager
Risk Manager
Environmental Compliance Officer
Facility Manager
Energy Trading Manager
Legal Counsel
Chief Operating Officer
Procurement Specialist
Technical Director
Project Manager
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