Power Sale Agreement Template for Denmark

The Power Sale Agreement serves as a critical commercial contract in the Danish energy market, establishing the legal and operational framework for electricity trading between generators, utilities, and end-users. This document is essential when parties seek to establish a long-term power purchase arrangement, whether for conventional or renewable energy sources. It must comply with Danish energy law, including the Electricity Supply Act (Elforsyningsloven) and relevant EU regulations. The agreement typically covers technical specifications, delivery points, metering arrangements, pricing mechanisms, payment terms, and risk allocation. It's particularly relevant in context of Denmark's green energy transition and liberalized electricity market, often incorporating provisions for renewable energy certificates and grid balancing responsibilities.

1. Parties: Identification of the power seller and buyer, including registration details and addresses

2. Background: Context of the agreement, including facility details and purpose of the power sale arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including references to Danish electricity market terms

4. Sale and Purchase Obligation: Core obligations regarding power sale and purchase, including any take-or-pay provisions

5. Delivery Point and Title Transfer: Specification of the delivery point and transfer of title to the electricity

6. Metering and Documentation: Requirements for metering, recording, and documenting power delivery

7. Price and Payment Terms: Pricing structure, invoicing requirements, and payment terms

8. Term and Termination: Duration of agreement, renewal provisions, and termination rights

9. Force Majeure: Definition and consequences of force majeure events

10. Grid Connection and Compliance: Requirements for grid connection and compliance with grid codes

11. Representations and Warranties: Standard and specific warranties related to power sale

12. Liability and Indemnification: Allocation of risks and liability between parties

13. Dispute Resolution: Procedures for resolving disputes under Danish law

14. Governing Law: Confirmation of Danish law as governing law

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