Document background
The Power Offtake Agreement serves as a critical commercial instrument in the Australian energy market, establishing a long-term contractual relationship between power generators and purchasers. This agreement type is essential for securing project financing for new generation facilities and providing revenue certainty for existing ones. It is commonly used in both renewable and conventional power projects, requiring compliance with the National Electricity Law, National Electricity Rules, and state-specific regulations. The document typically includes detailed provisions for power purchase commitments, pricing structures, delivery points, metering arrangements, and risk allocation mechanisms. It's particularly crucial for projects requiring project financing and those participating in the National Electricity Market, often serving as a foundational document for major energy infrastructure developments in Australia.
