Power Purchase Agreement Wind Template for Indonesia

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Key Requirements PROMPT example:

Power Purchase Agreement Wind

"I need a Wind Power Purchase Agreement for a 100MW wind farm project in East Java, Indonesia, where my company (PT Green Wind Energy) will be selling power to PLN, with expected commercial operation date in March 2025."

Document background
The Power Purchase Agreement Wind template is essential for wind power projects in Indonesia's growing renewable energy sector. It serves as the fundamental commercial agreement between an Independent Power Producer developing and operating a wind power facility and PT PLN (Persero) as the state electricity company. The document is designed to comply with Indonesian regulatory requirements, including the Electricity Law and renewable energy regulations, while addressing specific characteristics of wind power generation such as intermittency and technical requirements. This agreement type is crucial for Indonesia's renewable energy targets and includes provisions for project development, operation, maintenance, pricing, and risk allocation. It's particularly relevant given Indonesia's increasing focus on renewable energy development and the government's commitment to expanding clean energy sources in the national energy mix.
Suggested Sections

1. Parties: Identification of the power producer (seller) and the power purchaser (typically PLN in Indonesia)

2. Background: Context of the agreement, including project location, capacity, and regulatory framework

3. Definitions: Detailed definitions of technical, financial, and legal terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations including commitment to sell/purchase electricity, exclusivity provisions

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

6. Construction and Development: Requirements and timeline for facility construction, testing, and commissioning

7. Commercial Operation: Conditions for achieving commercial operation date and related procedures

8. Operating Requirements: Technical and operational standards, maintenance requirements

9. Metering and Testing: Requirements for measuring delivered electricity and testing procedures

10. Billing and Payment: Payment terms, calculations, invoicing procedures, and dispute resolution

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

12. Insurance: Required insurance coverage and related obligations

13. Assignment and Change of Control: Conditions for transfer of rights and change in ownership

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

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

Optional Sections

1. Direct Agreement: Required if project financing is involved, addressing lender's step-in rights

2. Carbon Credits: Optional section for allocation of carbon credits or other environmental attributes

3. Local Content Requirements: Required if specific local content obligations apply under Indonesian regulations

4. Grid System Emergency: Optional detailed procedures for grid emergencies and curtailment

5. Deemed Generation: Optional provisions for payment during grid unavailability or curtailment

6. Performance Security: Required if specific performance guarantees or bonds are needed

Suggested Schedules

1. Facility Description: Technical specifications of the wind power facility

2. Site Description: Detailed description and maps of project location

3. Testing Procedures: Detailed procedures for testing and commissioning

4. Tariff and Payment Calculations: Detailed pricing formula and payment calculations

5. Minimum Functional Specifications: Technical requirements for the facility

6. Grid Connection Requirements: Technical specifications for grid interconnection

7. Performance Standards: Required operational performance metrics

8. Form of Construction Security: Template for construction period security

9. Form of Operating Security: Template for operation period security

10. Insurance Requirements: Detailed list of required insurance coverage

11. Environmental and Social Requirements: Environmental and social compliance requirements

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

Power Generation

Utilities

Infrastructure

Clean Technology

Energy

Project Finance

Construction

Relevant Teams

Legal

Project Development

Commercial

Finance

Operations

Regulatory Affairs

Business Development

Risk Management

Environmental Compliance

Technical

Contract Management

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Project Development Manager

Commercial Director

Energy Trading Manager

Technical Director

Chief Financial Officer

Regulatory Compliance Manager

Business Development Manager

Project Finance Manager

Operations Manager

Risk Manager

Contract Manager

Environmental Compliance Officer

Industries
Law No. 30 of 2009 on Electricity: The fundamental electricity law in Indonesia that governs power generation, transmission, distribution, and sales, including licensing requirements for power producers
Presidential Regulation No. 4 of 2016 on Electricity Infrastructure: Regulates the acceleration of electricity infrastructure development, including renewable energy projects
MEMR Regulation No. 50 of 2017: Regulates the utilization of renewable energy sources for electricity generation, including specific provisions for wind power projects
Government Regulation No. 79 of 2014 on National Energy Policy: Sets the framework for Indonesia's energy mix targets, including renewable energy development goals
Law No. 25 of 2007 on Investment: Provides the legal framework for foreign and domestic investment in power projects
Law No. 32 of 2009 on Environmental Protection and Management: Establishes environmental protection requirements and environmental impact assessment procedures for power projects
MEMR Regulation No. 4 of 2020: Governs the power purchase pricing mechanism between independent power producers and PLN (state utility company)
Law No. 2 of 2012 on Land Procurement: Regulates land acquisition and usage rights for infrastructure projects including power plants
Government Regulation No. 14 of 2012 on Electricity Business: Details the implementation of electricity business activities, including technical and safety standards
MEMR Regulation No. 39 of 2018: Provides guidelines for grid connection and transmission requirements for power producers
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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