# Power Resources > Power Resources means sources of energy arranged to provide electricity under an [agreement] **Term:** Power Resources **Last updated:** 2026-07-29 ## Definition ## What Power Resources Means in a Contract Power Resources describes the underlying sources of energy that a contracting party uses, controls, or arranges to generate or deliver electricity under the terms of an agreement. This can include physical generation assets like power plants, renewable installations, or fuel stocks, as well as contractual rights to purchase electricity from a grid operator or third-party supplier. The term is most often used to describe the inputs behind a supplier's obligation to deliver power reliably and in the quantities specified. In practice, Power Resources is a defined term that anchors the contract's core promise. Rather than simply saying a party will supply electricity, an agreement may specify that the party will maintain, operate, or contract for Power Resources sufficient to meet demand, capacity, or reliability targets. This framing lets the parties allocate responsibility for where the electricity actually comes from and how continuity of supply will be maintained over the contract term. Because electricity itself is fungible once delivered to a grid, the concept of Power Resources becomes a proxy for supply security. It allows drafters to describe diversification, backup arrangements, and contingency planning in concrete terms, which is particularly important in long-term or high-value energy contracts. ## How Power Resources Is Defined or Measured Definitions of Power Resources vary depending on the type of agreement, but they typically identify the categories of assets or arrangements that count toward the term. Common categories include owned generation facilities, leased or contracted generation capacity, fuel supply agreements, renewable energy certificates, and rights to draw power from a shared grid or interconnection. Measurement often ties Power Resources to specific metrics such as megawatts of capacity, expected annual output, or a percentage of total supply obligations. Some agreements list Power Resources in a schedule or exhibit, allowing the parties to update the list without renegotiating the entire contract. Others use broader language, referring to any resource reasonably available to the supplying party at the relevant time. - Capacity-based measures, such as maximum megawatts available - Output-based measures, such as expected kilowatt-hours over a billing period - Reliability measures, such as backup or redundancy requirements - Compliance measures, such as renewable or emissions-related sourcing requirements Precise measurement matters because it determines whether a party has met its supply obligations and whether penalties, credits, or termination rights are triggered by shortfalls. ## Where Power Resources Appears in Agreements The term is most commonly found in energy supply and offtake arrangements, including an [Energy Purchase Agreement](https://www.genieai.co/en-us/template-type/energy-purchase-agreement), where it describes what the seller will use to fulfill delivery commitments. It also appears in interconnection agreements, power purchase agreements between generators and utilities, and infrastructure contracts where energy supply supports a broader project, such as construction or manufacturing operations. Outside pure energy deals, Power Resources can surface in leases, facilities management contracts, and service agreements where uninterrupted electricity is essential to performance, such as data center hosting, hospital operations, or manufacturing lines. In these contexts, the clause may cross-reference the supplier's Power Resources to reassure the counterparty that adequate backup or diversified sourcing exists. Industries such as [Energy](https://www.genieai.co/industry/energy), manufacturing, and transport frequently rely on this term when negotiating supply continuity, while regulated sectors may also reference Power Resources in compliance schedules tied to environmental or grid stability standards. ## Why the Exact Wording Matters The precise wording used to define Power Resources determines the scope of a party's obligations and the flexibility it retains. A narrow definition limited to specific named facilities can create risk if those facilities become unavailable, while a broad definition referencing any reasonably available source gives the supplying party more flexibility but may weaken the certainty the buyer expected. Ambiguity in this term can lead to disputes over whether a party breached its supply commitments, particularly during outages, fuel shortages, or regulatory changes affecting generation. Clear wording also affects how force majeure, curtailment, and step-in rights interact with the availability of Power Resources, since a shortfall in resources may excuse or trigger different remedies depending on how the contract characterizes the cause. The interpretation of these provisions ultimately depends on the law governing the contract, particularly where statutory energy regulations or grid codes intersect with the private agreement. ## Drafting Considerations When drafting or reviewing a Power Resources clause, parties should consider whether the definition should be fixed, listed in a schedule, or described functionally to allow for change over time. A schedule-based approach offers transparency but requires a mechanism for updates, while a functional definition offers flexibility but less predictability. Drafters should also address what happens if Power Resources become insufficient, including notice obligations, substitution rights, and remedies such as price adjustments or termination. Where renewable sourcing or emissions targets are relevant, the clause should specify how compliance will be verified and reported. Finally, cross-referencing related definitions, such as capacity, delivery point, and force majeure, helps ensure the Power Resources clause works coherently with the rest of the agreement, reducing the risk of conflicting interpretations if a supply issue arises. For related background on structuring these obligations, see resources on [Creating a Power Purchase Agreement](https://www.genieai.co/blog/creating-a-power-purchase-agreement). ## Context ### Relevant circumstances - Arranging new power sources for a business or organization. - Setting the terms for acquisition of power resources over a specified period. - Contracting with power plants to purchase a portion of their produced electricity. ### Relevant sectors - Energy ## Relevant contract types - [Energy Purchase Agreement](https://www.genieai.co/en-us/template-type/energy-purchase-agreement) --- This is the Markdown representation of [https://www.genieai.co/en-us/define/power-resources](https://www.genieai.co/en-us/define/power-resources), provided for AI agents and crawlers. The HTML page is canonical. See [/llms.txt](https://www.genieai.co/llms.txt) for the full content map.