Corporate Power Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Corporate Power Purchase Agreement

"I need a Corporate Power Purchase Agreement for a 50MW solar farm in Norfolk, with a 15-year term starting from March 2025, where we'll be selling power to a major tech company for their UK data centers."

Document background
Corporate Power Purchase Agreements have become increasingly important as organizations seek to meet sustainability goals and secure long-term renewable energy supply. Under English and Welsh law, these agreements provide a framework for direct procurement of renewable electricity, typically spanning 10-15 years. They address key commercial and operational aspects including pricing mechanisms, delivery obligations, environmental attributes, and risk allocation. The agreement must comply with UK energy regulations while providing certainty for both generators seeking project finance and corporate buyers pursuing clean energy targets.
Suggested Sections

1. 1. Parties: Identification and details of the power generator and corporate buyer

2. 2. Background/Recitals: Context of the agreement, including facility details and parties' objectives

3. 3. Definitions and Interpretation: Key terms and interpretation rules used throughout the agreement

4. 4. Sale and Purchase Obligations: Core obligations regarding electricity sale, purchase, and delivery

5. 5. Term and Termination: Duration of agreement and termination circumstances

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

7. 7. Metering and Records: Requirements for measuring and recording electricity delivery

8. 8. Force Majeure: Circumstances excusing performance and related procedures

9. 9. Representations and Warranties: Standard legal assurances from both parties

Optional Sections

1. Environmental Attributes: Treatment of renewable energy certificates and credits - used when renewable energy attributes are being transferred

2. Development and Construction: Obligations regarding facility construction - used for new facilities not yet operational

3. Credit Support: Financial security requirements - used when credit risk mitigation is required

4. Change in Law: Procedures for addressing regulatory changes - used for longer-term agreements

Suggested Schedules

1. Schedule 1 - Facility Description: Technical details of the generating facility

2. Schedule 2 - Pricing Schedule: Detailed pricing mechanisms and calculations

3. Schedule 3 - Operating Parameters: Technical operating requirements and procedures

4. Schedule 4 - Form of Direct Agreement: Standard form for lender direct agreements

5. Schedule 5 - Metering Specifications: Technical requirements for metering equipment

6. Schedule 6 - Performance Security: Forms of required security instruments

7. Schedule 7 - Insurance Requirements: Required insurance coverage details

8. Schedule 8 - Generation Forecasting: Procedures for forecasting generation output

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
Relevant Teams
Relevant Roles
Industries

Electricity Act 1989: Primary legislation governing the electricity sector in England and Wales, establishing the licensing regime and regulatory framework

Energy Act 2013: Key legislation introducing Electricity Market Reform, including Contracts for Difference (CfD) and capacity market mechanisms

Energy Act 2020: Recent legislation updating energy policy and regulation, particularly focusing on net zero targets

Climate Change Act 2008: Sets legally binding carbon reduction targets and establishes framework for addressing climate change

Renewables Obligation Order: Primary support mechanism for large-scale renewable electricity projects in the UK

Grid Code: Technical code defining the relationship between the National Grid and all users of the high-voltage transmission system

Distribution Code: Technical requirements for connection and use of the electricity distribution networks

Balancing and Settlement Code: Governs the balancing mechanism and imbalance settlement processes in the electricity market

Environmental Protection Act 1990: Framework for integrated pollution control and waste management relevant to energy projects

Contract Law Principles: English Common Law principles governing formation and enforcement of contracts

Unfair Contract Terms Act 1977: Regulates contracts by restricting how far contracting parties can avoid liability using contract terms

Competition Act 1998: Prohibits anti-competitive agreements and abuse of dominant market positions

Enterprise Act 2002: Contains provisions on merger control and market investigations in the energy sector

Financial Services and Markets Act 2000: Regulates financial services and markets, including energy derivatives and trading

UK GDPR: Post-Brexit data protection regulation governing personal data processing and transfer

Data Protection Act 2018: UK's implementation of data protection standards, complementing UK GDPR

Companies Act 2006: Primary legislation governing company operations and corporate governance in the UK

REGO Scheme: Renewable Energy Guarantees of Origin scheme proving electricity generated from renewable sources

MiFID II (UK): UK version of Markets in Financial Instruments Directive, regulating financial markets and improving protections for investors

Ofgem Regulations: Rules and guidance from the Office of Gas and Electricity Markets, the UK energy regulator

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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