Power Sale Agreement Template for England and Wales

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Key Requirements PROMPT example:

Power Sale Agreement

"I need a Power Sale Agreement for a new solar plant in Cornwall, with a capacity of 50MW, where we will be selling to a large industrial buyer starting from March 2025, including specific provisions for renewable energy certificates and grid connection arrangements."

Document background
A Power Sale Agreement is essential for structuring electricity supply arrangements in the UK energy market. This document is typically used when establishing long-term power purchase arrangements between generators and buyers, whether for conventional or renewable energy sources. The agreement, governed by English and Welsh law, must comply with the regulatory framework established by the Electricity Act 1989 and subsequent legislation, while addressing commercial aspects such as pricing, delivery obligations, and risk allocation. It's particularly crucial for project financing in the energy sector and often serves as a key bankability document.
Suggested Sections

1. Parties: Identification and details of the power seller and buyer

2. Background: Context of the agreement and basic commercial understanding

3. Definitions: Key terms used throughout the agreement including regulatory references

4. Sale and Purchase Obligations: Core obligations regarding power supply and purchase commitments

5. Pricing and Payment: Price calculation methodology, invoicing procedures, and payment terms

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

7. Metering and Testing: Requirements for measuring supplied power and testing procedures

8. Force Majeure: Events excusing performance and related procedures

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

10. Governing Law and Disputes: Choice of law and dispute resolution procedures

Optional Sections

1. Green Certificates: Provisions for renewable energy certificates and environmental attributes (for renewable power sources)

2. Capacity Market: Specific provisions for capacity market participation and revenue sharing

3. Grid Connection: Responsibilities and requirements for grid connection and maintenance

4. Development Milestones: Construction and development timeline requirements for projects not yet operational

5. Change in Law: Provisions dealing with regulatory changes affecting the agreement

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of power supply and facility specifications

2. Pricing Formula: Detailed pricing calculations, adjustments, and indexation mechanisms

3. Testing Procedures: Detailed testing and commissioning procedures for the facility

4. Metering Requirements: Technical specifications for metering equipment and procedures

5. Form of Performance Security: Template for performance bonds or other security documents

6. Operating Procedures: Detailed procedures for day-to-day operation and maintenance

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 establishing framework for electricity generation, transmission, and supply, including licensing requirements and consumer protection measures

Energy Act 2004: Legislation covering renewable energy obligations and environmental protection measures for power generation and supply

Energy Act 2013: Key legislation implementing electricity market reform, establishing Contracts for Difference (CfD) framework and capacity market regulations

Climate Change Act 2008: Framework legislation setting carbon reduction commitments and emissions trading schemes affecting power generation

Electricity Market Reform (EMR): Regulatory framework designed to modernize electricity market and incentivize low carbon electricity generation

OFGEM Regulations: Regulatory requirements set by the Office of Gas and Electricity Markets governing power sale and market operation

Grid Code: Technical requirements for connection and operation within the electricity transmission system

Balancing and Settlement Code (BSC): Rules for electricity balancing and settlement in Great Britain's electricity market

Connection and Use of System Code (CUSC): Framework of commercial arrangements between National Grid and users of its transmission system

Retained EU Energy Regulations: Post-Brexit retained European Union regulations affecting energy markets and cross-border trading arrangements

Competition Law: Legal framework preventing anti-competitive practices in power markets, including Competition Act 1998 and Enterprise Act 2002

Consumer Protection Legislation: Laws protecting consumer rights in power purchase agreements, including Consumer Rights Act 2015

Environmental Regulations: Environmental protection requirements affecting power generation and sale, including Environmental Protection Act 1990

Health and Safety Regulations: Health and Safety at Work Act 1974 and related regulations affecting power generation and supply operations

Data Protection Laws: UK GDPR and Data Protection Act 2018 requirements for handling personal data in power sale agreements

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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