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Power Purchase Contract

Power Purchase Contract Template for Indonesia

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Key Requirements PROMPT example:

Power Purchase Contract

"I need a Power Purchase Contract for a 50MW solar power plant in East Java, Indonesia, with COD planned for March 2025, including specific provisions for renewable energy credits and environmental attributes."

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Document background
The Power Purchase Contract is a fundamental document in Indonesia's energy infrastructure development, establishing the legal and commercial framework for electricity generation and sale. This agreement is typically used when an Independent Power Producer (IPP) wishes to sell electricity to PT PLN (Persero), Indonesia's state-owned electricity company. The document must comply with Indonesian regulations, particularly Law No. 30 of 2009 (Electricity Law) and its implementing regulations, while addressing crucial aspects such as pricing mechanisms, minimum off-take obligations, technical requirements, and risk allocation. The agreement is essential for project financing and typically serves as the cornerstone document for power generation projects, whether conventional or renewable energy. It requires careful consideration of Indonesian local content requirements, environmental regulations, and grid connection standards.
Suggested Sections

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

2. Background: Context of the agreement, including project overview and relevant regulatory framework

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including minimum take-or-pay provisions

5. Term and Effectiveness: Duration of the agreement, conditions precedent, and effectiveness requirements

6. Construction and Development: Requirements and timeline for power facility construction and development

7. Testing and Commissioning: Procedures for testing and commissioning the power facility

8. Operation and Maintenance: Standards and requirements for facility operation and maintenance

9. Metering and Testing: Requirements for electricity metering, testing procedures, and dispute resolution for measurements

10. Billing and Payment: Procedures for invoicing, payment terms, and dispute resolution for payments

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

12. Default and Termination: Events of default, cure periods, and termination procedures

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage and related obligations

15. Dispute Resolution: Procedures for resolving disputes, including choice of forum and governing law

16. Miscellaneous Provisions: Standard provisions including notices, amendments, and assignments

Optional Sections

1. Renewable Energy Credits: For renewable energy projects, provisions regarding renewable energy certificates and environmental attributes

2. Carbon Credits: Provisions regarding carbon credits and their allocation, if applicable

3. Government Guarantees: Where applicable, provisions regarding government support or guarantees

4. Currency Conversion: For PPAs with international developers, provisions regarding currency conversion and exchange rates

5. Local Content Requirements: Specific provisions regarding Indonesian local content requirements, if applicable

6. Grid Stability Provisions: Special provisions for large power plants regarding grid stability and frequency control

7. Fuel Supply Arrangements: For thermal power plants, provisions regarding fuel supply and quality

8. Environmental Credits: For green energy projects, provisions regarding environmental credits and benefits

Suggested Schedules

1. Technical Specifications: Detailed technical specifications of the power facility

2. Testing Procedures: Detailed procedures for testing and commissioning

3. Tariff and Payment Calculations: Detailed methodology for calculating tariffs and payments

4. Minimum Functional Specifications: Required technical and operational specifications

5. Site Description: Detailed description and drawings of the project site

6. Form of Construction and Operating Reports: Templates for required periodic reports

7. Interconnection Facilities: Specifications for grid interconnection facilities

8. Operating Procedures: Detailed procedures for day-to-day operation

9. Performance Standards: Required performance standards and testing procedures

10. Forms of Security: Templates for required performance security and other guarantees

11. Insurance Requirements: Detailed insurance requirements and minimum coverage

12. Environmental and Social Requirements: Detailed 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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Available Capacity
Availability Factor
Base Price
Billing Period
Business Day
Capacity Charge
Change in Law
Commercial Operation Date
Commissioning
Competent Authority
Connection Point
Construction Period
Contract Year
Declared Available Capacity
Deemed Availability
Deemed Generated Energy
Delivery Point
Dispatch Instructions
Effective Date
Emergency
Energy Charge
Energy Output
Environmental Law
Facility
Force Majeure Event
Fuel
Good Utility Practice
Grid
Grid Code
Heat Rate
IDR
Independent Engineer
Initial Operation Date
Interconnection Facilities
Laws of Indonesia
Lenders
Maintenance Schedule
Material Adverse Effect
Metering System
Minimum Functional Specifications
Net Electrical Output
Operating Committee
Operating Procedures
Outage
Performance Security
Performance Tests
Planned Maintenance
Plant
Point of Connection
Power Station
Prudent Utility Practice
PLN
Project Documents
Rated Capacity
Required Commercial Operation Date
Scheduled Outage
Site
Step-in Rights
System Emergency
Tariff
Technical Limits
Term
Testing
Transmission System
USD
Unit
Clauses
Conditions Precedent
Sale and Purchase Obligations
Term and Duration
Construction and Development
Testing and Commissioning
Operations and Maintenance
Performance Standards
Metering and Testing
Invoicing and Payment
Security Arrangements
Force Majeure
Change in Law
Default and Termination
Assignment and Transfer
Dispute Resolution
Governing Law
Confidentiality
Representations and Warranties
Insurance
Environmental Compliance
Health and Safety
Local Content Requirements
Grid Connection
Emergency Procedures
Technical Requirements
Fuel Supply (if applicable)
Performance Testing
Capacity and Energy Commitments
Take-or-Pay Obligations
Price and Payment
Currency Provisions
Indemnification
Liability Limitations
Step-in Rights
Notices
Records and Reporting
Government Approvals
Site Access
Interconnection
Scheduled Maintenance
Intellectual Property
Relevant Industries

Energy

Power Generation

Renewable Energy

Infrastructure

Utilities

Natural Resources

Industrial

Manufacturing

Mining

Oil & Gas

Relevant Teams

Legal

Finance

Commercial

Operations

Business Development

Risk Management

Regulatory Compliance

Technical

Environmental

Project Management

Energy Trading

Corporate Affairs

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Chief Financial Officer

Project Director

Legal Counsel

Energy Infrastructure Manager

Power Plant Manager

Commercial Director

Business Development Manager

Risk Manager

Regulatory Compliance Officer

Technical Director

Operations Manager

Contract Manager

Energy Trading Manager

Environmental Compliance Manager

Industries
Law No. 30 of 2009: The Electricity Law - Primary legislation governing electricity sector in Indonesia, including generation, transmission, distribution, and sale of electricity
Government Regulation No. 79 of 2014: National Energy Policy (KEN) - Sets the framework for energy policy including renewable energy targets and energy mix objectives
Minister of Energy and Mineral Resources Regulation No. 50 of 2017: Regulates the utilization of renewable energy sources for electricity generation and sets pricing mechanisms for renewable energy PPAs
Presidential Regulation No. 4 of 2016: Acceleration of Electricity Infrastructure Development - Provides framework for fast-tracking power projects and relevant procurement processes
Law No. 25 of 2007: Investment Law - Governs foreign and domestic investment in Indonesia, including in the power sector
Government Regulation No. 14 of 2012: Electricity Business Provision - Details the implementation of electricity business activities and licensing requirements
Minister of Energy and Mineral Resources Regulation No. 49 of 2017: Regulates the terms and conditions for power purchase agreements between independent power producers and PLN
Law No. 32 of 2009: Environmental Protection and Management - Sets environmental compliance requirements for power generation projects
Government Regulation No. 27 of 2012: Environmental Impact Assessment (AMDAL) requirements for power generation projects
Minister of Energy and Mineral Resources Regulation No. 45 of 2017: Specifies technical regulations for interconnection with the national power grid
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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