Document background
The Power Purchase Agreement Renewable (Energy) is a crucial document used in Saudi Arabia's renewable energy sector to establish long-term electricity purchase arrangements between independent power producers and power purchasers. This agreement type has gained particular significance with Saudi Arabia's Vision 2030 initiative, which targets 50% renewable energy in the kingdom's energy mix by 2030. The document serves as the primary commercial agreement underpinning renewable energy project development, incorporating specific requirements from Saudi Arabia's regulatory framework, including ECRA regulations, environmental standards, and grid code requirements. It typically covers a 20-25 year term and includes detailed provisions for energy output guarantees, payment mechanisms, grid connection requirements, and performance standards, while ensuring compliance with both Saudi commercial law and Shariah principles.
