Third Party Power Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Third Party Power Purchase Agreement

"I need a Third Party Power Purchase Agreement for a 50MW solar farm in Yorkshire, where we'll be selling power to a major tech company's data center through an established UK electricity supplier, with operations expected to start in March 2025."

Document background
Third Party Power Purchase Agreements are increasingly used in the UK energy market to facilitate direct electricity procurement between generators and consumers while maintaining regulatory compliance. These agreements are particularly valuable for renewable energy projects, providing revenue certainty for generators and stable electricity costs for consumers. Under English and Welsh law, these agreements must involve a licensed supplier as an intermediary to comply with electricity supply regulations. The document covers essential aspects including pricing mechanisms, volume commitments, metering requirements, and risk allocation between parties.
Suggested Sections

1. Parties: Identification of all contracting parties including generator, buyer, and any intermediaries

2. Background: Context of the agreement, facility details, and purpose of the PPA

3. Definitions: Defined terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including volume commitments

5. Price and Payment: Pricing mechanism, payment terms, invoicing, and disputes

6. Term and Termination: Duration of agreement and termination rights

7. Metering and Communications: Requirements for measuring and reporting electricity generation

8. Force Majeure: Events outside parties' control affecting performance

Optional Sections

1. Green Certificates: Provisions for handling renewable energy certificates or guarantees of origin when dealing with renewable energy sources

2. Development Obligations: Construction and commissioning requirements for projects not yet operational

3. Credit Support: Security arrangements and credit requirements when credit risk management is needed

Suggested Schedules

1. Facility Description: Technical specifications of the generation facility

2. Pricing Schedule: Detailed pricing mechanisms and calculations

3. Operating Parameters: Technical operating requirements and constraints

4. Form of Direct Agreement: Standard form for direct agreements with financiers

5. Metering Specifications: Technical requirements for metering equipment

6. Performance Requirements: Minimum performance standards and testing procedures

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
Industries

Electricity Act 1989: Core legislation governing electricity generation and supply in the UK, including licensing requirements and regulatory framework

Energy Act 2013: Legislation covering electricity market reforms and Contract for Difference (CfD) framework

Contracts Act 1999: Fundamental contract law principles governing formation, enforcement, and interpretation of contracts in England and Wales

Climate Change Act 2008: Framework for reducing greenhouse gas emissions and meeting climate change commitments

Electricity Market Reform (EMR): Regulatory framework designed to attract investment in low-carbon electricity generation

OFGEM Regulations: Regulatory guidelines and requirements set by the Office of Gas and Electricity Markets

Grid Code: Technical requirements for connection and use of the National Electricity Transmission System

Balancing and Settlement Code (BSC): Rules for electricity trading arrangements and settlement in Great Britain

Renewable Energy Directives: EU-derived legislation promoting the use of energy from renewable sources (as retained in UK law)

Environmental Protection Act 1990: Framework for integrated pollution control and waste management

Town and Country Planning Act 1990: Legislation governing land development and planning permission requirements

Infrastructure Planning Act 2008: Framework for approval of major infrastructure projects including energy facilities

Consumer Rights Act 2015: Protection of consumer rights and regulation of unfair contract terms where applicable

Unfair Contract Terms Act 1977: Regulation of unfair terms in contracts and limitation of liability clauses

Data Protection Act 2018: UK implementation of GDPR, governing the processing of personal data

Modern Slavery Act 2015: Corporate compliance requirements regarding forced labor and human trafficking

Bribery Act 2010: Anti-corruption legislation affecting corporate compliance and business conduct

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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