Power Supply Contract Template for Indonesia

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Key Requirements PROMPT example:

Power Supply Contract

"I need a Power Supply Contract for a solar power company supplying 5MW of electricity to a manufacturing facility in Jakarta Industrial Park, with operations starting March 2025, including provisions for planned maintenance and emergency backup power."

Document background
The Power Supply Contract serves as a crucial legal instrument in Indonesia's energy sector, establishing the commercial and technical framework for power supply arrangements between providers and consumers. This document is essential when establishing long-term power supply relationships, particularly for industrial or commercial operations requiring dedicated or substantial power supply. The agreement must comply with Indonesia's Electricity Law and related regulations, including tariff regulations, technical standards, and safety requirements. It typically includes detailed specifications for power quality, reliability standards, emergency procedures, and pricing mechanisms aligned with Indonesian regulatory requirements. The document is particularly relevant for large-scale power consumers, independent power producers, and state electricity company arrangements, requiring careful consideration of both technical capabilities and regulatory compliance.
Suggested Sections

1. Parties: Identification of the power supplier and purchaser, including their legal status and registration details

2. Background: Context of the agreement, including relevant licenses and permits held by the parties

3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement

4. Supply Obligations: Core obligations regarding power supply, including capacity, availability, and quality requirements

5. Technical Specifications: Technical parameters of power supply, including voltage, frequency, and connection points

6. Metering and Measurement: Requirements for measuring and recording power supply

7. Pricing and Payment: Tariff structure, billing procedures, and payment terms

8. Operation and Maintenance: Responsibilities for maintaining supply infrastructure and equipment

9. Force Majeure: Events constituting force majeure and resulting obligations

10. Term and Termination: Duration of the agreement and grounds for termination

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

12. Dispute Resolution: Procedures for resolving disputes, including choice of forum

13. Governing Law: Confirmation of Indonesian law as governing law and relevant regulations

14. Notices: Communication procedures between parties

15. General Provisions: Standard boilerplate clauses including assignment, amendment, and severability

Optional Sections

1. Environmental Compliance: Required when power generation is included in scope, detailing environmental obligations and compliance requirements

2. Emergency Procedures: Needed for critical infrastructure supply arrangements, detailing responses to emergency situations

3. Security of Supply: Required for contracts with specific reliability requirements, detailing backup arrangements

4. Local Content Requirements: Necessary when Indonesian local content regulations apply to the supply arrangement

5. Change in Law Provisions: Important for long-term contracts to address regulatory changes impact

6. Step-in Rights: Required for projects involving project finance or critical infrastructure

7. Interface Obligations: Needed when multiple parties are involved in the supply chain

8. Performance Security: Required when parties agree on performance bonds or bank guarantees

Suggested Schedules

1. Technical Specifications Schedule: Detailed technical parameters of power supply and equipment specifications

2. Pricing Schedule: Detailed pricing formulas, adjustments, and examples of calculations

3. Testing and Commissioning Procedures: Procedures for initial testing and ongoing performance testing

4. Operating Procedures: Detailed procedures for day-to-day operations and maintenance

5. Metering Specifications: Technical details of metering equipment and measurement procedures

6. Performance Standards: Detailed performance requirements and measurement criteria

7. Site Access and Security Procedures: Procedures for accessing facilities and security requirements

8. Emergency Contact Details: List of emergency contacts and escalation procedures

9. Required Permits and Licenses: List of all required regulatory approvals and licenses

10. Form of Performance Security: Template for performance bonds or bank guarantees if required

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

Energy & Utilities

Power Generation

Manufacturing

Mining

Industrial Processing

Healthcare

Data Centers & Technology

Real Estate & Property Management

Infrastructure

Special Economic Zones

Heavy Industry

Renewable Energy

Relevant Teams

Legal

Operations

Facilities Management

Engineering

Procurement

Risk Management

Compliance

Commercial

Finance

Project Management

Technical Services

Health Safety Environment

Energy Trading

Asset Management

Relevant Roles

Energy Director

Utilities Manager

Facilities Manager

Operations Director

Chief Technical Officer

Legal Counsel

Procurement Manager

Contract Manager

Power Plant Manager

Electrical Engineer

Risk Manager

Compliance Officer

Commercial Director

Technical Director

Energy Trading Manager

Chief Financial Officer

Project Manager

HSE Manager

Industries
Law No. 30 of 2009 on Electricity: The primary legislation governing electricity supply and operations in Indonesia, covering licensing, safety standards, and operational requirements for power supply activities
Government Regulation No. 14 of 2012 on Electricity Supply Business: Implementing regulation detailing business activities in the electricity sector, including power supply arrangements and technical requirements
Indonesian Civil Code (KUHPerdata): Provides the basic framework for contract law in Indonesia, including formation, validity, and enforcement of contracts
Law No. 8 of 1999 on Consumer Protection: Relevant for power supply contracts involving end consumers, establishing consumer rights and business obligations
Minister of Energy and Mineral Resources Regulation No. 50 of 2017: Regulates electricity tariffs and pricing mechanisms for power supply agreements
Government Regulation No. 79 of 2014 on National Energy Policy: Sets the framework for energy policy and planning, affecting long-term power supply arrangements
Law No. 32 of 2009 on Environmental Protection and Management: Environmental requirements affecting power generation and supply activities
Law No. 25 of 2007 on Investment: Governs foreign and domestic investment in the power sector, including ownership restrictions and investment requirements
Government Regulation No. 24 of 2018 on Online Single Submission: Regulates business licensing procedures, including permits required for power supply operations
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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