The Physical Power Purchase Agreement is essential for businesses engaging in direct electricity supply arrangements in the Netherlands. It is commonly used when a power generator wishes to sell electricity directly to an end-user or trader, with physical delivery through the Dutch grid infrastructure. The agreement details all aspects of the power supply relationship, including technical specifications, delivery obligations, pricing mechanisms, and risk allocation. This document type has gained increased importance with the growth of renewable energy projects and corporate sustainability initiatives in the Netherlands. It must comply with Dutch energy regulations, including the Electricity Act 1998 and Grid Code, while also considering EU energy market rules. The agreement is particularly relevant for long-term power supply arrangements and typically includes provisions for grid connection, metering, balancing responsibility, and operational procedures specific to the Dutch electricity market.
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Key Requirements PROMPT example:
Physical Power Purchase Agreement
"I need a Physical Power Purchase Agreement under Dutch law for a 50MW solar plant in Rotterdam, with delivery starting January 2025 to a large industrial customer, including provisions for battery storage and curtailment rights."
1. Parties: Identification of the power producer/seller and the buyer/offtaker, including registration details
2. Background: Context of the agreement, including facility details and parties' objectives
3. Definitions: Defined terms used throughout the agreement, including technical and market-specific terminology
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including delivery point and exclusivity provisions
5. Facility and Production Requirements: Specifications of the generation facility and production commitments
6. Delivery and Metering: Requirements for physical delivery, metering arrangements, and grid connection
7. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures
8. Grid Connection and Balancing: Responsibilities for grid connection, maintenance, and balancing requirements
9. Force Majeure: Events constituting force majeure and consequences
10. Term and Termination: Duration of agreement, renewal options, and termination rights
11. Representations and Warranties: Standard and specific warranties from both parties
12. Liability and Indemnification: Allocation of risks and liability limitations
13. Confidentiality: Protection of confidential information
14. Governing Law and Disputes: Choice of Dutch law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Sustainability Requirements: For green PPAs: specifications regarding renewable energy certificates and sustainability reporting
2. Development and Construction: For new facilities: obligations regarding facility construction and development milestones
3. Storage Provisions: If applicable: terms relating to energy storage facilities and operations
4. Curtailment: If relevant: procedures and compensation for curtailment events
5. Market Changes: For long-term PPAs: mechanism to address regulatory or market structure changes
6. Credit Support: If required: parent company guarantees, bank guarantees, or other security arrangements
7. Insurance: If specific insurance requirements are needed beyond standard coverage
1. Facility Description: Technical specifications of the generation facility
2. Pricing Mechanism: Detailed pricing calculations, adjustments, and examples
3. Operating Procedures: Detailed procedures for day-to-day operations and communications
4. Metering Specifications: Technical requirements for metering equipment and procedures
5. Performance Specifications: Minimum performance requirements and testing procedures
6. Form of Direct Agreement: Standard form for lender direct agreement if project financed
7. Grid Connection Details: Technical specifications for grid connection
8. Form of Guarantees: Templates for any required parent company or bank guarantees
9. Commissioning Tests: If new facility: required tests and acceptance criteria
10. Contact Details: List of key contacts and authorized representatives
Authors
Relevant legal definitions
Affiliate
Agreement
Alternative Supply
Annual Contract Quantity
Authorities
Available Capacity
Balancing Responsible Party
Billing Period
Business Day
Capacity
Change in Law
Commencement Date
Commercial Operation Date
Competent Authority
Connection Agreement
Connection Point
Contract Price
Contract Year
Curtailment
Delivery Period
Delivery Point
Dispatch
Dutch Grid
Effective Date
Electricity
Emergency
Energy Management System
Environmental Attributes
Expected Annual Output
Facility
Force Majeure
Good Industry Practice
Grid Code
Grid Connection
Grid Operator
Guaranteed Output
Imbalance
Initial Period
Interconnection Facilities
Invoice
kW
kWh
Law
Maintenance Schedule
Market Price
Metering Device
Metering Point
MW
MWh
Nameplate Capacity
Network Losses
Nominated Capacity
Operating Parameters
Outage
Payment Security
Planned Maintenance
Point of Common Coupling
Power Purchase Agreement
Prudent Operating Practice
Reactive Power
Receiving Party
Reference Price
Renewable Energy
Required Permits
Scheduled Maintenance
Settlement Period
System Emergency
System Operator
Technical Specifications
Term
Termination Date
Transmission System
Unit Contingent
Voltage
Week Ahead Schedule
Agreement
Alternative Supply
Annual Contract Quantity
Authorities
Available Capacity
Balancing Responsible Party
Billing Period
Business Day
Capacity
Change in Law
Commencement Date
Commercial Operation Date
Competent Authority
Connection Agreement
Connection Point
Contract Price
Contract Year
Curtailment
Delivery Period
Delivery Point
Dispatch
Dutch Grid
Effective Date
Electricity
Emergency
Energy Management System
Environmental Attributes
Expected Annual Output
Facility
Force Majeure
Good Industry Practice
Grid Code
Grid Connection
Grid Operator
Guaranteed Output
Imbalance
Initial Period
Interconnection Facilities
Invoice
kW
kWh
Law
Maintenance Schedule
Market Price
Metering Device
Metering Point
MW
MWh
Nameplate Capacity
Network Losses
Nominated Capacity
Operating Parameters
Outage
Payment Security
Planned Maintenance
Point of Common Coupling
Power Purchase Agreement
Prudent Operating Practice
Reactive Power
Receiving Party
Reference Price
Renewable Energy
Required Permits
Scheduled Maintenance
Settlement Period
System Emergency
System Operator
Technical Specifications
Term
Termination Date
Transmission System
Unit Contingent
Voltage
Week Ahead Schedule
Clauses
Interpretation
Definitions
Sale and Purchase
Delivery
Term and Termination
Price and Payment
Metering
Grid Connection
Balancing Responsibility
Technical Requirements
Operating Procedures
Maintenance
Force Majeure
Change in Law
Representations and Warranties
Covenants
Events of Default
Termination Rights
Liability and Indemnification
Insurance
Confidentiality
Assignment
Change of Control
Dispute Resolution
Governing Law
Notices
Bank Guarantees
Performance Security
Regulatory Compliance
Environmental Compliance
Health and Safety
Emergency Procedures
Records and Audit Rights
Intellectual Property
Anti-Corruption
Data Protection
Amendments
Waiver
Severability
Entire Agreement
Third Party Rights
Counterparts
Definitions
Sale and Purchase
Delivery
Term and Termination
Price and Payment
Metering
Grid Connection
Balancing Responsibility
Technical Requirements
Operating Procedures
Maintenance
Force Majeure
Change in Law
Representations and Warranties
Covenants
Events of Default
Termination Rights
Liability and Indemnification
Insurance
Confidentiality
Assignment
Change of Control
Dispute Resolution
Governing Law
Notices
Bank Guarantees
Performance Security
Regulatory Compliance
Environmental Compliance
Health and Safety
Emergency Procedures
Records and Audit Rights
Intellectual Property
Anti-Corruption
Data Protection
Amendments
Waiver
Severability
Entire Agreement
Third Party Rights
Counterparts
Relevant Industries
Energy & Utilities
Renewable Energy
Manufacturing
Industrial Production
Data Centers
Commercial Real Estate
Agriculture
Chemical Industry
Food & Beverage
Mining
Transportation
Relevant Teams
Legal
Commercial
Energy Trading
Risk Management
Finance
Operations
Technical
Procurement
Sustainability
Compliance
Treasury
Project Development
Asset Management
Relevant Roles
Energy Trading Manager
Commercial Director
Legal Counsel
Energy Procurement Manager
Sustainability Officer
Chief Financial Officer
Risk Manager
Technical Operations Manager
Facility Manager
Business Development Director
Contract Manager
Grid Connection Manager
Energy Markets Analyst
Compliance Officer
Project Finance Manager
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