Document background
The Virtual Power Purchase Agreement (VPPA) template is designed for use in the Indonesian market where corporate entities seek to support renewable energy development while managing their electricity costs and environmental goals. This document type is particularly relevant when physical delivery of electricity is not feasible or desired, enabling corporate buyers to claim environmental benefits while the generator sells electricity into the grid. The agreement complies with Indonesian regulatory requirements, including the electricity law framework and investment regulations, while incorporating international VPPA best practices. It includes comprehensive provisions for financial settlements, environmental attribute transfers, risk allocation, and dispute resolution, adapted to the Indonesian legal context. The document is structured to accommodate project financing requirements and includes necessary provisions for regulatory compliance, making it suitable for both domestic and international participants in Indonesia's renewable energy market.
