Power Offtake Agreement Template for Denmark

The Power Offtake Agreement serves as a crucial instrument in the Danish energy market, establishing the commercial and technical framework for power purchase arrangements between generators and consumers. This document type is essential for both utility-scale power projects and corporate power purchases, particularly in the context of Denmark's green energy transition. It addresses key aspects such as delivery obligations, pricing structures, grid requirements, and regulatory compliance, while incorporating specific Danish market mechanisms and EU energy regulations. The agreement is particularly relevant for renewable energy projects but can also be adapted for conventional power generation. Power Offtake Agreements play a vital role in project financing, providing the revenue certainty needed for new power generation projects while helping corporate buyers meet their sustainability goals.

1. Parties: Identification of the power producer/seller and the offtaker/buyer, including full legal names and registration details

2. Background: Context of the agreement, including facility description, purpose, and relevant regulatory framework

3. Definitions: Defined terms used throughout the agreement, including technical, commercial, and legal terminology

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity, including minimum/maximum volumes

5. Delivery Point and Title Transfer: Specification of where electricity is delivered and when title passes from seller to buyer

6. Term and Termination: Duration of the agreement, conditions for extension, and termination rights

7. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures

8. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records

9. Grid Connection and Technical Requirements: Obligations regarding grid connection and compliance with technical standards

10. Planned Maintenance: Procedures for scheduling and conducting maintenance of the generation facility

11. Force Majeure: Definition of force majeure events and their consequences

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

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

14. Insurance: Required insurance coverage for both parties

15. Confidentiality: Obligations regarding confidential information

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

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