The Corporate PPA template is designed for use in Indonesia's evolving energy market, where businesses increasingly seek direct access to electricity supply, particularly from renewable sources. This document type emerged from the need to structure power purchase arrangements between independent power producers and corporate buyers while ensuring compliance with Indonesia's regulatory framework, including Law No. 30 of 2009 on Electricity and various implementing regulations. The agreement typically includes provisions for energy pricing, delivery specifications, technical requirements, and environmental attributes, while incorporating necessary safeguards for both parties. It is particularly relevant in the context of Indonesia's renewable energy targets and the growing corporate demand for clean energy solutions, providing a framework for long-term electricity supply arrangements that meet both commercial objectives and regulatory requirements.
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1. Parties: Identification of the power producer and the corporate buyer, including their complete legal names and addresses
2. Background: Context of the agreement, including facility details, purpose of the agreement, and relevant regulatory framework
3. Definitions: Comprehensive list of defined terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations including energy delivery commitments, take-or-pay provisions, and exclusivity arrangements
5. Term and Termination: Duration of the agreement, conditions precedent, and termination rights
6. Price and Payment: Tariff structure, payment terms, invoicing procedures, and dispute mechanisms
7. Delivery Point and Metering: Specification of the delivery point, metering requirements, and testing procedures
8. Environmental Attributes: Treatment of renewable energy certificates and other environmental benefits
9. Operating Procedures: Day-to-day operational requirements, maintenance schedules, and communication protocols
10. Force Majeure: Definition of force majeure events and their consequences
11. Default and Remedies: Events of default, cure periods, and available remedies
12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
13. General Provisions: Standard boilerplate provisions including notices, assignments, and amendments
1. Construction and Development: Required for new facilities, covering construction milestones, testing, and commissioning
2. Grid Connection: Needed when the project requires new grid connection arrangements
3. Performance Security: Include when security deposits or performance bonds are required
4. Change in Law: Detailed provisions for regulatory changes, particularly relevant in evolving renewable energy markets
5. Insurance: Detailed insurance requirements beyond standard provisions
6. Local Content Requirements: Include when specific Indonesian local content requirements apply
7. Step-in Rights: Include when lender step-in rights are required for project financing
8. Curtailment: Include for intermittent renewable energy sources
1. Facility Description: Technical specifications of the generation facility
2. Testing Procedures: Detailed procedures for testing and commissioning
3. Output Specifications: Expected energy output, including minimum and maximum quantities
4. Tariff and Payment Calculations: Detailed pricing formulas and adjustment mechanisms
5. Operating Procedures Manual: Detailed operational protocols and procedures
6. Form of Performance Security: Template for performance bonds or security deposits
7. Metering Specifications: Technical requirements for metering equipment and procedures
8. Environmental Compliance Requirements: Specific environmental standards and reporting requirements
9. Insurance Requirements: Detailed list of required insurance coverage
10. Form of Direct Agreement: Template agreement between lenders, seller, and buyer
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