Direct Power Purchase Agreement Template for Denmark

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Key Requirements PROMPT example:

Direct Power Purchase Agreement

I need a Direct Power Purchase Agreement for a new 50MW solar facility in Denmark, with power delivery starting July 2025, including provisions for construction phase monitoring and a 10-year term with extension options.

What is a Direct Power Purchase Agreement?

A Direct Power Purchase Agreement (PPA) is a crucial instrument in the Danish energy market, enabling corporate buyers to secure long-term electricity supply directly from power producers, typically renewable energy generators. This document type is particularly relevant for companies seeking to meet sustainability goals while securing predictable energy costs. The agreement, governed by Danish law, must comply with both national energy regulations and EU directives. It is commonly used when a corporate buyer wants to procure electricity directly from a specific generation facility, often a wind or solar installation. The document includes comprehensive terms covering commercial, technical, and operational aspects of the power purchase arrangement, including specific provisions required under Danish energy legislation such as balancing responsibilities and grid connection requirements.

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

1. Parties: Identification of the power producer (seller) and the corporate buyer, including registration details

2. Background: Context of the agreement, including facility details and parties' objectives

3. Definitions: Defined terms used throughout the agreement, including technical and market-specific terminology

4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including volume commitments

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

6. Delivery Point and Title Transfer: Specification of where electricity is delivered and when title passes

7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records

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

9. Generation Facility: Requirements and specifications for the power generation facility

10. Grid Connection and Transmission: Responsibilities for grid connection and transmission arrangements

11. Force Majeure: Events excusing performance and associated procedures

12. Representations and Warranties: Standard and specific warranties from each party

13. Governing Law and Dispute Resolution: Choice of Danish law and dispute resolution procedures

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

1. Green Certificates and Environmental Attributes: Section used when the buyer wants to acquire associated environmental benefits

2. Change in Law: Include when parties want specific provisions for handling regulatory changes

3. Project Financing: Required when the seller needs to include lender protection provisions

4. Performance Security: Include when parties require security for payment or delivery obligations

5. Planned Maintenance: Detailed maintenance terms needed for physical PPAs with specific facilities

6. Construction and Commissioning: Required for PPAs signed before facility completion

7. Insurance: Detailed insurance requirements when not covered in general representations

8. Trading and Balancing Responsibilities: Required for physical PPAs with specific balancing arrangements

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

1. Facility Specifications: Technical details of the generation facility

2. Pricing Mechanism: Detailed pricing calculations and adjustments

3. Operating Parameters: Technical operating specifications and requirements

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

5. Form of Direct Agreement: Standard form for lender direct agreement if project financed

6. Performance Security Requirements: Forms and calculations for any required security

7. Generation Forecasting: Procedures and requirements for production forecasting

8. Grid Connection Requirements: Technical specifications for grid connection

9. Form of Guarantees: Standard forms for any parent company or performance guarantees

10. Commissioning Tests: Required testing procedures and acceptance criteria

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

Relevant legal definitions
Clauses
Relevant Industries

Renewable Energy

Manufacturing

Data Centers

Industrial Production

Retail

Technology

Food and Beverage

Pharmaceuticals

Chemicals

Telecommunications

Real Estate

Relevant Teams

Legal

Procurement

Finance

Sustainability

Operations

Risk Management

Environmental Compliance

Trading

Strategy

Project Development

Relevant Roles

Energy Procurement Manager

Sustainability Director

Chief Financial Officer

Legal Counsel

Commercial Director

Head of Operations

Risk Manager

Environmental Compliance Officer

Power Trading Manager

Renewable Energy Developer

Project Finance Manager

Corporate Strategy Director

Energy Operations Manager

Sustainability Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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