Document background
The Power Purchase Agreement Solar is a crucial document in Nigeria's renewable energy sector, used to formalize the long-term sale and purchase of electricity generated from solar power facilities. This agreement is essential for both grid-connected and off-grid solar projects, providing the commercial framework necessary for project financing and development. It addresses key aspects including energy pricing, delivery obligations, technical standards, and risk allocation, while ensuring compliance with Nigerian regulatory requirements, particularly the Electric Power Sector Reform Act 2005 and NERC regulations. The document is typically used when developing new solar power projects or formalizing existing arrangements, and becomes the cornerstone document for project financing, operational guidelines, and risk management. Its structure reflects both international best practices in renewable energy contracts and specific Nigerian market conditions and regulatory requirements.
