Energy Purchase Agreement Template for United States

An Energy Purchase Agreement is a long-term contract between power producers and buyers in the Philippines' electricity market. These agreements typically lock in electricity rates and supply terms between independent power producers and distribution utilities like Meralco, or large industrial customers who need consistent power supply.

Under the Electric Power Industry Reform Act (EPIRA), these agreements help stabilize the country's energy market by guaranteeing steady revenue for power plants while protecting buyers from price volatility. They usually cover important details like minimum energy delivery commitments, payment terms, and performance standards - making them essential tools for energy security and business planning.

Consider an Energy Purchase Agreement when launching a new power generation project or securing long-term electricity supply in the Philippines. This agreement becomes essential for power producers building solar farms, wind parks, or conventional plants who need guaranteed revenue streams to secure financing and operational stability.

Distribution utilities and large industrial consumers benefit from these agreements when they need predictable electricity costs and reliable supply. The agreement proves particularly valuable during grid instability or price fluctuations in the Wholesale Electricity Spot Market (WESM). For compliance with EPIRA regulations, both parties need this agreement before any significant power supply arrangement can begin.

• Power Supply Agreement: Traditional agreement for utility-scale power plants selling to distribution companies, featuring fixed rates and guaranteed minimum supply
• PPA Agreement Solar: Specialized for solar projects, including intermittency provisions and performance guarantees specific to solar generation
• Virtual Power Purchase Agreement: Financial settlement structure where parties trade energy credits without physical delivery
• Commercial Solar PPA: Tailored for commercial building installations, focusing on rooftop systems and behind-the-meter arrangements

• Power Generators: Independent power producers, renewable energy companies, and traditional power plants who sell electricity and need guaranteed revenue streams
• Distribution Utilities: Companies like Meralco who purchase power in bulk to distribute to end-users, requiring stable supply arrangements
• Energy Lawyers: Draft and review Energy Purchase Agreements to ensure compliance with EPIRA and DOE regulations
• Corporate Energy Users: Large industrial facilities and commercial establishments seeking direct power supply contracts
• Energy Regulatory Commission: Reviews and approves agreements to ensure fair rates and consumer protection

• Power Details: Determine exact capacity requirements, delivery points, and voltage levels needed for the agreement
• Technical Specs: Gather generation facility specifications, including type of power plant, expected availability, and maintenance schedules
• Pricing Structure: Calculate base rates, capacity fees, and variable charges following ERC guidelines
• Compliance Check: Verify all necessary DOE permits and ERC certificates are current
• Performance Standards: Define minimum reliability targets, power quality requirements, and emergency protocols
• Contract Duration: Plan timeline considering project financing needs and market conditions

• Party Details: Complete legal names, addresses, and authorized representatives of power producer and buyer
• Supply Terms: Contracted capacity, delivery points, minimum take-or-pay quantities as per EPIRA guidelines
• Pricing Structure: Detailed breakdown of base rates, adjustments, and payment mechanisms following ERC regulations
• Force Majeure: Specific conditions and procedures during grid emergencies or unplanned outages
• Performance Standards: Power quality requirements, reliability metrics, and penalty clauses
• Dispute Resolution: Clear arbitration procedures under Philippine law
• Term and Termination: Contract duration, renewal options, and early termination conditions

Energy Purchase Agreements (EPAs) are often confused with Asset Purchase Agreements in the power sector, but they serve distinctly different purposes in Philippine business transactions. While both involve significant financial commitments, their core functions and applications differ substantially.

• Duration and Purpose: EPAs focus on ongoing electricity supply relationships, typically spanning 10-25 years, while Asset Purchase Agreements involve one-time transfers of power plant ownership or equipment
• Payment Structure: EPAs involve recurring payments based on actual power consumption and agreed rates, whereas Asset Purchase Agreements feature a single purchase price with possible installment terms
• Regulatory Oversight: EPAs require ERC approval and must comply with EPIRA guidelines, while Asset Purchase Agreements primarily follow general contract law and SEC regulations
• Performance Obligations: EPAs include detailed power delivery commitments and quality standards, while Asset Purchase Agreements focus on asset condition and transfer warranties