Document background
The Contract for Differences PPA is specifically designed for use in New Zealand's energy market where parties seek to manage long-term electricity price risks through financial settlement mechanisms. This document type is particularly valuable when generators (especially renewable energy providers) require revenue certainty for project financing, while offtakers seek price stability for their electricity costs. The agreement provides a sophisticated framework for calculating and settling the difference between an agreed strike price and market reference price, complying with both New Zealand's financial services regulations and electricity market rules. It includes essential provisions for credit support, market disruption events, and regulatory compliance, making it suitable for both existing facilities and new development projects. The document structure accommodates various generation types while ensuring compliance with the Financial Markets Conduct Act 2013 and the Electricity Industry Participation Code 2010.
