Ppa Agreement Solar Template for England and Wales

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Key Requirements PROMPT example:

Ppa Agreement Solar

"I need a Solar PPA Agreement for a 50MW solar farm in Yorkshire, where we'll be selling electricity to a major retail chain for 15 years starting March 2025, with quarterly payment terms and specific performance guarantees."

Document background

The Solar PPA Agreement is a crucial document in renewable energy projects within England and Wales, establishing the commercial and technical framework for selling and purchasing solar-generated electricity. It is typically used when a solar power facility wants to secure a long-term buyer for its output, or when an organization wants to purchase renewable energy directly from a generator. The agreement covers essential aspects including pricing, delivery terms, performance guarantees, and compliance with UK energy regulations. This document is fundamental for project financing and provides certainty for both generators and purchasers in the renewable energy market.

Suggested Sections

1. Parties: Details of the Generator and Buyer, including registered addresses and company numbers

2. Background: Context of the agreement including facility details and purpose

3. Definitions: Key terms used throughout the agreement including technical, commercial and legal definitions

4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including delivery points and exclusivity provisions

5. Pricing and Payment: Price calculation methodology, invoicing procedures, payment terms and dispute resolution for payments

6. Term and Termination: Duration of agreement, conditions precedent, extension options and termination rights

7. Metering and Reporting: Requirements for measuring and reporting electricity generation, including metering specifications

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

9. Representations and Warranties: Standard and specific warranties from both parties

10. Insurance: Required insurance coverage and maintenance

11. Assignment and Change of Control: Restrictions and conditions for transfer of rights or change in ownership

12. Governing Law and Disputes: Choice of law, jurisdiction and dispute resolution procedures

Optional Sections

1. Green Certificates: Provisions for handling REGOs (Renewable Energy Guarantees of Origin) or other environmental attributes

2. Construction and Commissioning: Requirements for facility construction and completion, including milestone dates and liquidated damages

3. Battery Storage: Terms relating to energy storage systems, including operating parameters and additional revenue streams

4. Grid Connection: Responsibilities and requirements for grid connection and compliance

5. Performance Guarantees: Minimum performance requirements and remedies for shortfall

Suggested Schedules

1. Facility Description: Technical specifications of the solar facility including location, capacity, and equipment details

2. Pricing Schedule: Detailed pricing mechanisms, calculations and adjustment procedures

3. Testing Procedures: Commissioning and performance test requirements and procedures

4. Form of Direct Agreement: Standard form agreement between lenders, generator and buyer

5. Operating Parameters: Technical operating requirements, maintenance procedures and performance standards

6. Metering Specifications: Detailed requirements for metering equipment and procedures

7. Form of Performance Security: Template for any required performance bonds or guarantees

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

Clauses

Relevant Industries

Relevant Teams

Relevant Roles

Industries

Electricity Act 1989: Primary legislation establishing the framework for electricity generation, transmission, and supply, including licensing requirements

Energy Act 2013: Key legislation covering Electricity Market Reform provisions and Contracts for Difference framework

Climate Change Act 2008: Establishes carbon reduction commitments and renewable energy targets

Renewable Energy Directive: EU directive as incorporated into UK law post-Brexit, governing renewable energy requirements

Feed-in Tariffs Legislation: Regulations governing the feed-in tariff scheme for renewable energy generation

Renewables Obligation Order: Legislative framework for the Renewables Obligation Certificate (ROC) scheme

Grid Code: Technical requirements for connection to and use of the National Electricity Transmission System

Distribution Code: Technical requirements for connection to and use of electricity distribution networks

Connection and Use of System Code: Framework of commercial arrangements for connection to and use of the transmission system

Town and Country Planning Act 1990: Planning permission requirements for solar installations

Environmental Protection Act 1990: Environmental safeguards and requirements for energy installations

Environmental Impact Assessment Regulations: Requirements for assessing environmental impact of solar installations

Contract Law Common Law: Fundamental principles of contract formation and enforcement under English common law

Sale of Goods Act 1979: Legislation governing contracts for the sale of goods

Unfair Contract Terms Act 1977: Regulations controlling unfair terms in contracts

Consumer Rights Act 2015: Protection for consumers in contracts, if PPA involves consumer parties

Consumer Protection from Unfair Trading Regulations 2008: Protection against unfair commercial practices in consumer contracts

Ofgem Regulations: Rules and guidelines from the Office of Gas and Electricity Markets

UK Energy Market Rules: Specific market regulations governing electricity trading and supply

UK GDPR: Data protection requirements as incorporated into UK law post-Brexit

Health and Safety Regulations: Safety requirements for installation and operation of solar facilities

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Authors

Alex Denne

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