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Power Supply Agreement

Power Supply Agreement Template for Indonesia

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Key Requirements PROMPT example:

Power Supply Agreement

"I need a Power Supply Agreement for a 50MW solar power plant in East Java, Indonesia, where my company will supply electricity to PT PLN starting from March 2025, with a focus on renewable energy certificates and environmental compliance."

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Document background
The Power Supply Agreement is a fundamental document in Indonesia's electricity sector, typically used when an Independent Power Producer (IPP) or other power generator agrees to supply electricity to PT PLN (Persero) or a private off-taker. This agreement type is essential for Indonesia's power infrastructure development and is subject to specific regulatory requirements under Law No. 30 of 2009 (The Electricity Law) and various implementing regulations. The document structures long-term power supply arrangements, typically spanning 20-30 years, and includes detailed provisions for technical specifications, operational procedures, pricing mechanisms, and risk allocation. It is particularly important in the context of Indonesia's growing energy demands and the government's push for increased private sector participation in power generation, including renewable energy projects.
Suggested Sections

1. Parties: Identification of the power supplier and purchaser, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, including relevant licenses, permits and business background of the parties

3. Definitions and Interpretation: Definitions of technical and commercial terms used in the agreement, and rules of interpretation

4. Term and Effectiveness: Duration of the agreement, conditions precedent, and effective date

5. Supply Obligations: Core obligations regarding power supply, including capacity commitments and availability requirements

6. Delivery Point and Title: Specification of the delivery point(s) and transfer of title/risk

7. Metering and Testing: Requirements for measuring supplied electricity and testing procedures

8. Price and Payment: Pricing structure, billing procedures, and payment terms

9. Operating Procedures: Day-to-day operational requirements and procedures

10. Maintenance and Outages: Planned and unplanned maintenance provisions, outage management

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

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

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

14. Insurance: Required insurance coverage for both parties

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. Confidentiality: Protection of confidential information

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

Optional Sections

1. Renewable Energy Certificates: Required for renewable energy power supply, covering green certificates and environmental attributes

2. Grid Connection: Include when the supplier is responsible for grid connection infrastructure

3. Multiple Delivery Points: Required when power is delivered to multiple locations

4. Development and Construction: Include for new power facilities that are yet to be constructed

5. Fuel Supply: Required for thermal power plants, addressing fuel procurement and quality

6. Carbon Credits: Include for projects eligible for carbon credits or similar environmental incentives

7. Government Guarantees: Include when government backing or guarantees are part of the transaction

8. Local Content Requirements: Include when specific Indonesian local content requirements apply

Suggested Schedules

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

2. Testing Procedures: Procedures for testing and commissioning

3. Metering Requirements: Detailed specifications for metering equipment and procedures

4. Pricing Formula: Detailed calculation of power price including adjustments and indexation

5. Operating Procedures Manual: Detailed procedures for day-to-day operations

6. Performance Standards: Required performance levels and calculation of availability/reliability

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

8. Interconnection Requirements: Technical requirements for grid connection

9. Emergency Procedures: Procedures for handling emergency situations

10. Required Permits and Licenses: List of required governmental approvals and licenses

11. Site Description: Details of the power facility location and delivery points

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
Agreed Capacity
Ancillary Services
Annual Operating Plan
Availability Factor
Back-up Power
Base Load
Billing Period
Business Day
Capacity Charge
Commercial Operation Date
Connection Point
Contract Year
Deemed Generated Energy
Delivery Point
Dispatch Instructions
Effective Date
Electricity Law
Emergency
Energy Charge
Environmental Laws
Event of Default
Facility
Force Majeure Event
Good Industry Practice
Grid
Grid Code
Initial Operation Date
Interconnection Facilities
Licensed Network
Maintenance Schedule
Maximum Capacity
Metering Equipment
Metering Point
Minimum Take-or-Pay Quantity
Monthly Invoice
Net Electrical Output
Operating Committee
Operating Procedures
Outage
Peak Load
Performance Security
Planned Maintenance
Point of Common Coupling
Power Purchase Price
Power Station
Prudent Operating Practice
Required Commercial Operation Date
Required Consents
Scheduled Outage
System Emergency
System Operator
Tariff Adjustment
Technical Limits
Term
Testing Period
Transmission System
Unplanned Outage
Voltage Level
Clauses
Parties
Background
Definitions
Supply Obligations
Delivery
Term
Conditions Precedent
Technical Requirements
Metering
Testing and Commissioning
Price and Payment
Invoicing
Performance Security
Operation and Maintenance
Force Majeure
Change in Law
Representations and Warranties
Default
Termination
Liability and Indemnification
Insurance
Assignment
Confidentiality
Dispute Resolution
Governing Law
Environmental Compliance
Health and Safety
Emergency Procedures
Grid Connection
Maintenance Schedule
Regulatory Compliance
Local Content Requirements
Records and Audit
Notices
Amendments
Entire Agreement
Severability
Third Party Rights
Anti-Corruption
Waiver
Counterparts
Relevant Industries

Energy & Utilities

Power Generation

Renewable Energy

Industrial Manufacturing

Mining

Infrastructure

Oil & Gas

Chemical Processing

Data Centers

Heavy Industry

Relevant Teams

Legal

Commercial

Operations

Technical

Finance

Procurement

Regulatory Affairs

Risk Management

Project Development

Environmental Compliance

Grid Operations

Asset Management

Relevant Roles

Power Plant Manager

Energy Trading Director

Legal Counsel

Commercial Director

Technical Director

Chief Financial Officer

Procurement Manager

Operations Manager

Regulatory Compliance Officer

Risk Manager

Project Development Manager

Business Development Director

Energy Contract Manager

Grid Connection Manager

Environmental Compliance Manager

Industries
Law No. 30 of 2009: The Electricity Law - Primary legislation governing all electricity-related activities in Indonesia, including generation, transmission, distribution, and sales of electricity
Government Regulation No. 14 of 2012: Regulation on Electricity Supply Business Activities - Details the requirements and procedures for electricity supply business activities
Minister of Energy and Mineral Resources Regulation No. 10 of 2017: Regulation on Power Purchase Agreement Principles - Establishes fundamental principles for power purchase agreements between independent power producers and PLN (state electricity company)
Law No. 30 of 2007: The Energy Law - Provides the basic framework for energy management and sustainable energy development in Indonesia
Indonesian Civil Code (KUHPerdata): General contract law provisions governing formation and enforcement of contracts, including Articles 1320 on contract validity requirements
Law No. 32 of 2009: Environmental Protection and Management Law - Relevant for environmental compliance requirements in power generation and supply
Presidential Regulation No. 4 of 2016: Acceleration of Power Infrastructure Development - Provides framework for expediting electricity infrastructure projects
Minister of Energy and Mineral Resources Regulation No. 50 of 2017: Utilization of Renewable Energy Sources for Power Supply - Specific regulations for renewable energy power supply agreements
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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