Power Supply Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Power Supply Agreement

"I need a Power Supply Agreement under Saudi Arabian law for supplying 50MW of electricity to an industrial facility in Jubail Industrial City, with operations scheduled to commence in March 2025, including provisions for emergency backup power and step-in rights for our lenders."

Document background
The Power Supply Agreement serves as the primary contractual framework for power supply arrangements in Saudi Arabia, establishing the rights and obligations between power generators/suppliers and purchasers. This document is essential for any significant power supply arrangement, whether for industrial facilities, commercial developments, or infrastructure projects. It must comply with Saudi Arabian regulations, including the Electricity Law, ECRA regulations, and environmental requirements, while adhering to Shariah law principles. The agreement typically covers technical specifications, delivery points, pricing mechanisms, performance standards, maintenance obligations, and force majeure provisions. It's particularly crucial given Saudi Arabia's growing energy demands and the Kingdom's Vision 2030 initiatives for energy sector development, including renewable energy integration.
Suggested Sections

1. Parties: Identification of the power supplier and purchaser, including their legal status and registration details

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Term and Effectiveness: Duration of the agreement, including conditions precedent and effective date

5. Supply Obligations: Core obligations regarding power supply, including quantity, quality, and availability requirements

6. Connection and Delivery Points: Specifications of power delivery points and connection responsibilities

7. Metering and Testing: Requirements for power measurement, testing procedures, and meter maintenance

8. Pricing and Payment Terms: Tariff structure, billing procedures, and payment terms

9. Operating Procedures: Day-to-day operational requirements and procedures

10. Maintenance and Outages: Planned and unplanned maintenance procedures and outage management

11. Force Majeure: Events constituting force majeure and consequent rights and obligations

12. Representations and Warranties: Standard representations and warranties from both parties

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage for both parties

15. Default and Termination: Events of default, remedies, and termination provisions

16. Dispute Resolution: Procedures for resolving disputes, including applicable law and jurisdiction

17. Confidentiality: Protection of confidential information

18. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Renewable Energy Provisions: Specific provisions for renewable energy sources, required when the power supply includes renewable energy

2. Environmental Compliance: Detailed environmental obligations, needed when specific environmental requirements apply

3. Security Requirements: Provisions for performance security or guarantees, included when required by either party

4. Local Content Requirements: Provisions addressing Saudi Arabia's local content requirements, needed for certain project types

5. Grid Connection Requirements: Specific provisions for grid connection, required when direct grid connection is part of the scope

6. Change in Law: Specific provisions dealing with regulatory changes, included for long-term agreements

7. Step-in Rights: Rights of lenders or third parties to step in, included when project financing is involved

8. Capacity Requirements: Specific capacity obligations and penalties, included for capacity-based agreements

Suggested Schedules

1. Technical Specifications: Detailed technical requirements for power supply

2. Testing and Commissioning Procedures: Procedures for initial and periodic testing

3. Metering Specifications: Detailed requirements for metering equipment and procedures

4. Operating Parameters: Specific operational requirements and standards

5. Tariff Structure and Calculations: Detailed pricing mechanisms and calculations

6. Performance Security Format: Template for any required performance security

7. Interface Matrix: Definition of responsibilities between parties

8. Emergency Procedures: Procedures for handling emergency situations

9. Key Performance Indicators: Specific performance metrics and standards

10. Required 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

Relevant legal definitions
Clauses
Relevant Industries

Energy & Utilities

Manufacturing & Industrial

Infrastructure

Mining

Oil & Gas

Real Estate & Construction

Healthcare

Data Centers & Technology

Petrochemicals

Renewable Energy

Relevant Teams

Legal

Operations

Commercial

Procurement

Technical

Compliance

Project Management

Risk Management

Finance

Facilities Management

Environmental

Business Development

Grid Operations

Regulatory Affairs

Relevant Roles

Legal Counsel

Energy Operations Manager

Commercial Director

Procurement Manager

Technical Director

Compliance Officer

Project Manager

Contract Manager

Risk Manager

Chief Financial Officer

Facility Manager

Environmental Compliance Manager

Power Plant Manager

Grid Operations Manager

Business Development Director

Industries
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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