Power Purchase Contract Template for Netherlands

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Key Requirements PROMPT example:

Power Purchase Contract

"I need a Power Purchase Contract for a Dutch offshore wind farm with 500MW capacity, delivering power to a major industrial customer in Rotterdam, with delivery starting March 2025 and running for 15 years, including provisions for green certificates."

Document background
A Power Purchase Contract is a fundamental agreement in the energy sector, used to formalize the long-term sale and purchase of electricity between generators and buyers in the Netherlands. This document is essential for both conventional and renewable energy projects, providing the contractual framework for energy trading while ensuring compliance with Dutch energy laws and EU regulations. It is particularly relevant in the context of the Netherlands' energy transition goals and increasing renewable energy deployment. The agreement typically covers aspects such as delivery obligations, pricing structures, operational requirements, and risk allocation, while incorporating specific provisions required under Dutch law. It's commonly used for new energy projects, corporate energy procurement, and industrial power supply arrangements, often serving as a key document for project financing.
Suggested Sections

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

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity

5. Term and Termination: Duration of the agreement and termination provisions

6. Delivery Point and Title Transfer: Specification of where electricity is delivered and when title passes

7. Metering and Documentation: Requirements for measuring delivered electricity and maintaining records

8. Price and Payment Terms: Pricing structure, invoicing, and payment procedures

9. Force Majeure: Events excusing performance and associated procedures

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

11. Compliance with Laws: Obligations to comply with relevant energy and environmental regulations

12. Dispute Resolution: Procedures for resolving disputes under Dutch law

13. Liability and Indemnification: Allocation of risks and liability between parties

14. Confidentiality: Protection of confidential information

15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Renewable Energy Certificates: Used when the PPA involves renewable energy, covering the transfer and handling of associated certificates

2. Grid Connection: Include when the seller is responsible for grid connection arrangements

3. Development and Construction: Required for PPAs signed before the generating facility is operational

4. Performance Guarantees: Used when specific performance levels are guaranteed, especially for renewable energy projects

5. Change in Law: Include when regulatory changes could significantly impact the agreement

6. Cross-Border Provisions: Required for PPAs involving international power trading

7. Capacity Requirements: Include when the agreement includes capacity payment elements

8. Storage Provisions: Used when the agreement involves energy storage facilities

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical parameters of the generating facility and delivery requirements

2. Schedule 2 - Pricing Mechanism: Detailed pricing calculations, adjustments, and examples

3. Schedule 3 - Operating Procedures: Day-to-day operational procedures and communications

4. Schedule 4 - Testing and Certification: Requirements for facility testing and certification procedures

5. Schedule 5 - Metering Specifications: Detailed metering requirements and procedures

6. Schedule 6 - Form of Direct Agreement: Standard form for direct agreements with financiers

7. Schedule 7 - Performance Standards: Detailed performance requirements and calculation methods

8. Schedule 8 - Insurance Requirements: Required insurance coverage details

9. Appendix A - Site Description: Details and drawings of the generating facility site

10. Appendix B - Contact Details: List of key contacts and authorized representatives

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

Energy & Utilities

Renewable Energy

Manufacturing

Industrial Production

Data Centers

Real Estate

Agriculture

Technology

Green Technology

Infrastructure

Relevant Teams

Legal

Commercial

Procurement

Operations

Risk Management

Sustainability

Finance

Business Development

Regulatory Affairs

Technical Operations

Trading

Strategy

Compliance

Relevant Roles

Energy Procurement Manager

Legal Counsel

Commercial Director

Sustainability Manager

Power Trading Manager

Project Developer

Risk Manager

Operations Director

Business Development Manager

Regulatory Compliance Officer

Chief Financial Officer

Energy Contract Manager

Technical Operations Manager

Portfolio Manager

Corporate Strategy Director

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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