Power Purchase Agreement Renewable (Energy) Template for Hong Kong

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Key Requirements PROMPT example:

Power Purchase Agreement Renewable (Energy)

"I need a Power Purchase Agreement Renewable (Energy) for a utility-scale solar project in Hong Kong, where my company will be selling 50MW of solar power to CLP Power, with commercial operations expected to begin in March 2025."

Document background
The Power Purchase Agreement Renewable (Energy) is a crucial document used in Hong Kong's renewable energy market to establish long-term arrangements between renewable power producers and purchasers. This agreement is essential for projects under Hong Kong's renewable energy initiatives, including solar, wind, and other clean energy sources. It accommodates both utility-scale projects and smaller installations, incorporating requirements specific to Hong Kong's electricity market structure and regulatory framework. The document addresses key commercial terms, technical specifications, regulatory compliance requirements, and risk allocation between parties. It is particularly relevant given Hong Kong's commitment to increasing renewable energy adoption and the government's sustainability targets, while ensuring compliance with local electricity regulations and environmental protection requirements.
Suggested Sections

1. Parties: Identification of the power producer and the purchaser, including their legal status and principal places of business

2. Background: Context of the agreement, including project overview and parties' objectives

3. Definitions: Comprehensive definitions of technical, commercial, and legal terms used in the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of renewable energy, including minimum purchase commitments

5. Term and Effective Date: Duration of the agreement and conditions for effectiveness

6. Delivery Point and Title Transfer: Specification of where energy will be delivered and when title passes

7. Metering and Measurement: Requirements for measuring delivered energy and maintaining metering equipment

8. Price and Payment Terms: Energy price, payment mechanics, invoicing, and payment security requirements

9. Construction and Commissioning: Requirements for facility construction and commissioning procedures

10. Operating Requirements: Operational standards, maintenance requirements, and performance guarantees

11. Regulatory Compliance: Compliance with Hong Kong electricity regulations and renewable energy requirements

12. Force Majeure: Events constituting force majeure and consequences

13. Default and Termination: Events of default, cure periods, and termination rights

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

15. Dispute Resolution: Procedures for resolving disputes under Hong Kong law

16. General Provisions: Standard boilerplate provisions including notices, amendments, and governing law

Optional Sections

1. Environmental Attributes: Provisions regarding renewable energy certificates and environmental credits - used when trading of these attributes is part of the deal

2. Grid Connection: Terms regarding grid interconnection and related responsibilities - used for projects requiring new grid connections

3. Storage Facilities: Provisions for energy storage systems - included when the project includes battery or other storage systems

4. Forecasting and Scheduling: Energy production forecasting requirements - used for larger utility-scale projects

5. Insurance: Detailed insurance requirements - separate section for larger projects

6. Security Package: Performance bonds and other security arrangements - used for larger projects or where required by purchaser

7. Change in Law: Specific provisions dealing with regulatory changes - important for longer-term PPAs

8. Local Content Requirements: Provisions regarding use of local contractors/equipment - used when required by regulations or project specifics

Suggested Schedules

1. Facility Description: Technical specifications of the renewable energy facility

2. Testing and Commissioning Procedures: Detailed procedures for facility testing and commissioning

3. Operating Procedures: Detailed operating procedures and performance standards

4. Metering Specifications: Technical requirements for metering equipment and procedures

5. Price Calculation and Adjustment: Detailed methodology for price calculations and adjustments

6. Form of Performance Security: Template for performance bonds or other security instruments

7. Grid Connection Requirements: Technical specifications for grid interconnection

8. Production Guarantees: Detailed performance guarantee calculations and requirements

9. Form of Direct Agreement: Template agreement between lenders, producer, and purchaser

10. Insurance Requirements: Detailed specification of required insurance coverage

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

Renewable Energy

Utilities

Power Generation

Clean Technology

Infrastructure

Manufacturing

Commercial Real Estate

Industrial

Environmental Services

Financial Services

Relevant Teams

Legal

Procurement

Sustainability

Finance

Operations

Risk Management

Environmental Compliance

Commercial

Technical

Project Development

Facility Management

Energy Trading

Relevant Roles

Energy Procurement Manager

Sustainability Director

Chief Financial Officer

Legal Counsel

Project Development Manager

Risk Manager

Environmental Compliance Officer

Commercial Director

Technical Director

Operations Manager

Facility Manager

Contract Manager

Chief Sustainability Officer

Energy Trading Manager

Renewable Energy Specialist

Industries
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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