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Third Party Solar Power Purchase Agreement

Third Party Solar Power Purchase Agreement Template for Pakistan

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Key Requirements PROMPT example:

Third Party Solar Power Purchase Agreement

"I need a Third Party Solar Power Purchase Agreement under Pakistani law for a 500kW rooftop solar installation at our textile manufacturing facility in Karachi, with a 15-year term starting March 2025 and including battery storage provisions."

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Document background
This Third Party Solar Power Purchase Agreement template is designed for use in Pakistan when a solar power provider seeks to install, own, and operate a solar power system on a customer's premises and sell the generated electricity to that customer. The document aligns with Pakistan's renewable energy regulatory framework, including the Alternative and Renewable Energy Policy 2019 and NEPRA regulations. It is particularly suitable for commercial and industrial customers looking to reduce energy costs and carbon emissions without capital investment. The agreement covers crucial aspects such as system installation, energy pricing, performance guarantees, maintenance obligations, and regulatory compliance. It includes provisions specific to the Pakistani power sector, including grid integration requirements and applicable permits. This template can be customized based on project size, customer type, and specific provincial requirements while maintaining compliance with federal Pakistani law.
Suggested Sections

1. Parties: Identification of the Solar Power Provider, the Customer/Offtaker, and any guarantors

2. Background: Context of the agreement, including project overview and parties' intentions

3. Definitions and Interpretation: Definitions of technical and legal terms, and rules of interpretation

4. Term and Conditions Precedent: Duration of agreement and conditions that must be met before obligations become effective

5. Installation and Commissioning: Requirements and process for system installation and commissioning

6. Sale and Purchase of Energy: Core obligations regarding energy supply and purchase commitments

7. Energy Price and Payment Terms: Pricing structure, billing procedures, and payment obligations

8. Operation and Maintenance: Responsibilities for system operation and maintenance

9. Metering and Monitoring: Requirements for energy measurement and monitoring systems

10. Representations and Warranties: Legal assurances provided by each party

11. Performance Standards: Required system performance levels and guarantees

12. Insurance and Liability: Insurance requirements and allocation of risks

13. Force Majeure: Provisions for unforeseeable circumstances preventing performance

14. Default and Termination: Events of default and termination rights and procedures

15. Dispute Resolution: Procedures for resolving disputes between parties

16. Governing Law: Applicable law and jurisdiction

17. General Provisions: Standard legal provisions including notices, amendments, and assignment

Optional Sections

1. Grid Connection: Required when system connects to the national grid, addressing interconnection requirements and responsibilities

2. Battery Storage: Include when the system includes energy storage components

3. Land Rights: Required when installation involves land lease or access rights

4. Environmental Credits: Include when parties wish to address ownership and trading of environmental attributes or carbon credits

5. Export Power: Required when excess power can be exported to the grid or other customers

6. Step-in Rights: Include when lenders require right to take control in case of default

7. Performance Bond: Include when additional security is required for performance obligations

8. Change in Law: Include detailed provisions when regulatory environment is uncertain

9. Buyout Options: Include if customer has option to purchase system during or at end of term

Suggested Schedules

1. System Technical Specifications: Detailed technical specifications of the solar power system

2. Site Details: Location details, site plans, and access arrangements

3. Energy Price Calculation: Detailed methodology for calculating energy prices, including any escalation

4. Performance Standards and Testing: Detailed performance metrics and testing procedures

5. Operation and Maintenance Procedures: Detailed maintenance schedule and procedures

6. Form of Performance Security: Template for any required performance bonds or guarantees

7. Metering Specifications: Technical requirements for metering equipment

8. Insurance Requirements: Detailed insurance coverage requirements

9. Form of Direct Agreement: Template agreement between lenders and project parties

10. Permits and Approvals: List of required regulatory approvals and permits

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
Actual Monthly Production
Agreement
Applicable Law
Authorizations
Billing Period
Business Day
Change in Law
Commercial Operation Date
Commissioning
Conditions Precedent
Confidential Information
Contract Year
Customer
Delivery Point
Dispute
DISCO
Early Termination Date
Effective Date
Electricity
Emergency
Energy Price
Environmental Attributes
Environmental Law
Event of Default
Expected Annual Production
Facility
Force Majeure Event
Good Industry Practice
Governing Documents
Grid
Installation Timeline
Installation Work
Interconnection Agreement
Interconnection Point
kWh
Land Rights
Lender
Metering Device
Minimum Production Guarantee
NEPRA
Net Metering
Operating Hours
Operation and Maintenance
Outage
Output
Party/Parties
Performance Bond
Permits
Planned Outage
Power Purchase Price
Premises
Project
Project Documents
Prudent Operating Practice
Purchase Option
Qualified Personnel
Related Parties
Relevant Authority
Required Authorizations
Safety Requirements
Schedule
Security Interest
Site
Solar Power Facility
Solar Power Provider
Specified Rate
System
Term
Termination Value
Testing
Transfer Date
Unplanned Outage
Weather Data
Clauses
Interpretations and Definitions
Project Scope
Conditions Precedent
Term and Termination
Construction and Installation
Testing and Commissioning
Sale and Purchase Obligations
Pricing and Payment
Metering
Performance Standards
Operation and Maintenance
Access Rights
Grid Connection
Regulatory Compliance
Representations and Warranties
Force Majeure
Insurance
Liability and Indemnification
Default Events
Remedies
Change in Law
Assignment
Confidentiality
Dispute Resolution
Notices
Health and Safety
Environmental Compliance
Security
Intellectual Property
Records and Audits
Amendments
Governing Law
Severability
Entire Agreement
Step-in Rights
Purchase Options
Land Use Rights
Performance Guarantees
Emergency Procedures
Relevant Industries

Manufacturing

Commercial Real Estate

Retail

Healthcare

Education

Hospitality

Industrial Processing

Warehousing and Logistics

Information Technology

Telecommunications

Agriculture

Textile Industry

Pharmaceutical

Food and Beverage

Relevant Teams

Legal

Finance

Operations

Procurement

Facilities Management

Risk Management

Sustainability

Compliance

Property Management

Project Management

Technical Services

Commercial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operations Officer

Legal Counsel

Energy Manager

Facility Manager

Sustainability Director

Procurement Manager

Project Manager

Risk Manager

Commercial Director

Technical Director

Operations Manager

Compliance Officer

Finance Director

Property Manager

Industries
Alternative and Renewable Energy Policy 2019: Pakistan's primary policy framework for renewable energy development, setting out guidelines for renewable energy projects and power purchase agreements
NEPRA Act 1997 (as amended): Establishes the regulatory framework for electric power generation, transmission, and distribution in Pakistan
NEPRA Licensing (Application, Modification, Extension and Cancellation) Procedure Regulations, 2021: Regulates licensing requirements for power generation and distribution
Contract Act 1872: Governs the formation and enforcement of contracts in Pakistan, providing the legal basis for the PPA agreement
Environmental Protection Act 1997: Sets environmental standards and requirements for power generation projects
NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations 2015: Specific regulations governing distributed generation and net metering arrangements for renewable energy systems
Grid Code 2005: Technical requirements for connection to and use of the national grid system
Registration Act 1908: Governs the registration of documents including agreements related to immovable property where solar installations will be placed
Electricity Act 1910: Historic legislation still relevant for basic electrical installation and safety requirements
Competition Act 2010: Ensures fair competition in commercial agreements and prevents anti-competitive practices in power purchase arrangements
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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