Physical Power Purchase Agreement for Switzerland

Physical Power Purchase Agreement Template for Switzerland

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Physical Power Purchase Agreement

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What is a Physical Power Purchase Agreement?

Physical Power Purchase Agreements in Switzerland are essential instruments for securing long-term electricity supply arrangements between power generators and consumers or utilities. These agreements are particularly relevant in today's energy market where organizations seek to secure reliable power supply while potentially meeting sustainability goals. The document is used when parties require physical delivery of electricity, rather than financial settlement, and must comply with Swiss energy regulations, including the Federal Energy Act and Federal Electricity Supply Act. A Physical Power Purchase Agreement typically includes detailed provisions for delivery specifications, metering arrangements, grid access, pricing mechanisms, and regulatory compliance requirements. It's particularly important in contexts involving renewable energy projects, industrial power supply, or utility-scale electricity procurement within the Swiss market.

What sections should be included in a Physical Power Purchase Agreement?

1. Parties: Identification of the seller (generator) and buyer, including full legal names and addresses

2. Background: Context of the agreement, including facility description and purpose of the PPA

3. Definitions and Interpretation: Detailed definitions of technical and commercial terms used in the agreement

4. Sale and Purchase Obligations: Core obligations including delivery points, voltage requirements, and minimum/maximum volumes

5. Term and Termination: Duration of the agreement, conditions for extension, and termination rights

6. Delivery Specifications: Technical specifications for power delivery, including grid connection requirements

7. Metering and Documentation: Requirements for measuring and recording electricity delivery

8. Price and Payment Terms: Pricing structure, invoicing, and payment procedures

9. Performance Security: Security requirements, including any guarantees or credit support

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

11. Representations and Warranties: Standard and specific warranties regarding capacity, licenses, and compliance

12. Grid Connection and Access: Responsibilities for grid connection and compliance with grid requirements

13. Compliance with Laws: Obligations to comply with Swiss energy regulations and other applicable laws

14. Dispute Resolution: Procedures for resolving disputes under Swiss law

15. Governing Law: Confirmation of Swiss law as governing law and jurisdiction

What sections are optional to include in a Physical Power Purchase Agreement?

1. Renewable Energy Certificates: Required if the power is from renewable sources and certificates are being traded

2. Sustainability Requirements: Include if there are specific environmental or sustainability obligations

3. Construction and Commissioning: Required for new facilities not yet operational

4. Insurance: Detailed insurance requirements if not covered in general terms

5. Change in Law: Specific provisions for handling regulatory changes in the Swiss energy market

6. Trading and Resale Rights: Include if buyer has rights to resell the purchased power

7. Curtailment: Required for arrangements where production might need to be reduced

8. Credit Rating Requirements: Include for agreements with specific creditworthiness requirements

What schedules should be included in a Physical Power Purchase Agreement?

1. Facility Technical Specifications: Detailed technical description of the generation facility

2. Testing and Commissioning Procedures: Procedures for facility testing and commissioning

3. Metering Specifications: Technical requirements for metering equipment and procedures

4. Operating Parameters: Detailed operating specifications and requirements

5. Pricing Mechanism and Calculations: Detailed pricing formulas and adjustment mechanisms

6. Form of Performance Security: Template for any required performance security or guarantees

7. Grid Connection Details: Technical specifications for grid connection

8. Contact Details and Notices: List of key contacts and notice requirements

9. Form of Direct Agreement: Template for direct agreements with financiers if required

10. Production Forecasting Requirements: Procedures and requirements for production forecasting

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Actual Delivered Energy
Affiliate
Applicable Law
Available Capacity
Availability Factor
Balancing Group
Banking Day
Billing Period
Business Day
Capacity
Change in Law
Commercial Operation Date
Commissioning
Competent Authority
Contract Capacity
Contract Price
Contract Year
Control
Deemed Generation
Defaulting Party
Delivery Point
Delivery Schedule
Dispatch Instructions
Due Date
Effective Date
ElCom
Electrical Installation
Emergency
Energy Charge
Environmental Attributes
Event of Default
Expected Annual Generation
Facility
Federal Grid Company
Force Majeure Event
Good Industry Practice
Governmental Approvals
Grid
Grid Code
Grid Connection
Grid Connection Point
Grid Operator
Guaranteed Energy
Initial Period
Installed Capacity
Interconnection Facilities
Invoice
Law
Lender
Maintenance Schedule
Material Adverse Effect
Metering Code
Metering Point
Metering System
Minimum Take-or-Pay Quantity
Monthly Statement
Net Electrical Output
Non-Defaulting Party
Operating Committee
Operating Procedures
Outage
Performance Security
Planned Maintenance
Point of Common Coupling
Power Station
Prudent Operating Practice
Purchase Price
Reactive Power
Receiving Party
Related Entity
Renewable Energy Certificates
Required Commercial Operation Date
Scheduled Commercial Operation Date
Scheduled Outage
Settlement Period
Station Load
Swiss Grid
System Operator
Technical Limits
Term
Termination Notice
Test Energy
Testing Period
Transmission License
Transmission System
Unit
Unplanned Outage
Voltage Level

Clauses

Relevant Industries

Energy & Utilities

Renewable Energy

Manufacturing

Industrial Production

Data Centers

Commercial Real Estate

Mining

Agriculture

Telecommunications

Healthcare

Relevant Teams

Legal

Energy Trading

Commercial

Risk Management

Technical Operations

Procurement

Regulatory Compliance

Finance

Sustainability

Grid Operations

Asset Management

Business Development

Relevant Roles

Energy Trading Manager

Power Purchase Manager

Legal Counsel

Energy Procurement Director

Sustainability Manager

Commercial Director

Risk Manager

Technical Operations Manager

Regulatory Compliance Officer

Chief Financial Officer

Energy Markets Analyst

Grid Operations Manager

Renewable Energy Developer

Power Plant Manager

Energy Contract Manager

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