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Commercial Solar Power Purchase Agreement

Commercial Solar Power Purchase Agreement Template for South Africa

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Key Requirements PROMPT example:

Commercial Solar Power Purchase Agreement

"I need a Commercial Solar Power Purchase Agreement for a manufacturing facility in Johannesburg, South Africa, with a 2MW solar installation including battery storage, where we'll be the power purchaser and want to ensure minimum guaranteed output of 80% during peak manufacturing hours."

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Document background
The Commercial Solar Power Purchase Agreement is essential for businesses in South Africa seeking to secure reliable and sustainable power supply through solar energy installations. This document is particularly relevant given South Africa's energy security challenges and the growing trend toward renewable energy adoption. It provides a comprehensive framework for the commercial relationship between solar power providers and purchasers, addressing key aspects such as technical specifications, performance guarantees, pricing structures, and operational responsibilities. The agreement ensures compliance with South African regulatory requirements, including NERSA regulations, Grid Code standards, and relevant environmental legislation. It is specifically designed for commercial-scale solar installations and can be customized based on factors such as installation size, grid connection requirements, and specific business needs.
Suggested Sections

1. Parties: Identification of the power provider and purchaser with full legal details

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

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules

4. Term and Conditions Precedent: Duration of the agreement and any conditions that must be met before the agreement becomes effective

5. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of solar power

6. Delivery Point and Installation: Specification of where power will be delivered and installation requirements

7. Metering and Monitoring: Requirements for measuring and monitoring power generation and consumption

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

9. Performance Standards: Required performance levels and guaranteed output specifications

10. Operation and Maintenance: Responsibilities for system operation and maintenance

11. Force Majeure: Provisions for unforeseen circumstances affecting performance

12. Default and Termination: Events of default and termination rights and procedures

13. Insurance and Liability: Insurance requirements and liability allocation

14. Dispute Resolution: Procedures for resolving disputes

15. General Provisions: Standard legal provisions including notices, assignment, and governing law

Optional Sections

1. Property Access and Site Lease: Required when the solar installation is on property not owned by the power purchaser

2. Grid Connection: Required when the system connects to the national grid, including compliance with Grid Code

3. Battery Storage: Required when the system includes energy storage components

4. Construction and Installation: Detailed when the provider is responsible for initial construction

5. Environmental Attributes: Allocation of renewable energy certificates and carbon credits

6. Multiple Delivery Points: Required when power is delivered to multiple locations

7. Refinancing Provisions: Required when project financing arrangements may change

8. Change in Law Provisions: Detailed provisions for managing regulatory changes in the renewable energy sector

Suggested Schedules

1. Technical Specifications: Detailed technical specifications of the solar power system

2. Price Schedule: Detailed pricing structure, escalation formulas, and payment terms

3. Performance Standards: Specific performance guarantees and testing procedures

4. Site Description: Detailed description of installation site and delivery points

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

6. Operation and Maintenance Schedule: Detailed maintenance requirements and schedules

7. Form of Performance Security: Template for any required performance bonds or guarantees

8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Grid Connection Requirements: Technical specifications for grid connection compliance

10. Construction Timeline: Project implementation schedule and milestones

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Actual Monthly Generation
Agreement
Annual Performance Guarantee
Applicable Law
Billing Period
B-BBEE Requirements
Business Day
Commercial Operation Date
Commencement Date
Commissioning Tests
Competent Authority
Confidential Information
Contract Price
Contract Year
Deemed Energy
Default Rate
Delivery Point
Development Period
Effective Date
Electricity
Emergency
Environmental Attributes
EPC Contract
Equipment
Event of Default
Expiry Date
Facility
Force Majeure Event
Good Industry Practice
Grid
Grid Code
Grid Connection
Grid Connection Agreement
Grid Connection Point
Initial Term
Installation Works
Interconnection Facilities
kWh
Land Rights
Local Content Requirements
Maintenance Schedule
Material Adverse Effect
Measurement Period
Metering System
Minimum Guaranteed Output
NERSA
Operating Hours
Operating Parameters
Operating Period
Performance Bond
Performance Standards
Performance Tests
Planned Maintenance
Point of Delivery
Power Purchase Price
Project
Project Site
Prudent Operating Practice
PV System
Reactive Power
Reasonable and Prudent Operator
Related Agreements
Relevant Authority
Renewal Term
Required Consents
Safety Requirements
Schedule Commercial Operation Date
Solar Energy Facility
Solar Photovoltaic Plant
Solar Power System
Step-in Rights
System Availability
Technical Advisor
Technical Specifications
Term
Termination Date
Testing and Commissioning
Transmission System
Unplanned Maintenance
Clauses
Parties and Definitions
Term
Conditions Precedent
Sale and Purchase Obligations
Delivery Point
Metering
Price and Payment
Invoicing
Performance Standards
Technical Specifications
Construction and Installation
Testing and Commissioning
Operation and Maintenance
Access Rights
Land Use
Grid Connection
Force Majeure
Default and Termination
Liquidated Damages
Environmental Compliance
Health and Safety
Insurance
Warranties
Indemnification
Liability
Confidentiality
Intellectual Property
Assignment
Change in Law
Dispute Resolution
Governing Law
Notices
B-BBEE Compliance
Local Content
Step-in Rights
Security
Reporting and Records
Risk of Loss
Regulatory Compliance
Representations and Warranties
Taxes
Permitting
Emergency Procedures
System Upgrades
Decommissioning
Anti-corruption
Data Protection
Relevant Industries

Manufacturing

Commercial Real Estate

Retail

Industrial

Mining

Agriculture

Healthcare

Education

Hospitality

Data Centers

Warehousing and Logistics

Office Parks

Shopping Centers

Food and Beverage Processing

Renewable Energy

Relevant Teams

Legal

Operations

Facilities Management

Procurement

Finance

Risk and Compliance

Sustainability

Property Management

Technical Services

Project Management

Environmental

Commercial

Relevant Roles

Chief Financial Officer

Head of Sustainability

Facilities Manager

Energy Manager

Legal Counsel

Commercial Director

Operations Director

Procurement Manager

Project Manager

Risk Manager

Technical Director

Chief Operations Officer

Environmental Compliance Officer

Sustainability Director

Property Manager

Industries
Electricity Regulation Act 4 of 2006: Primary legislation governing the electricity sector, including licensing requirements for electricity generation and distribution
National Energy Act 34 of 2008: Framework for energy planning and development, including renewable energy initiatives
National Environmental Management Act 107 of 1998: Environmental protection requirements and impact assessments for energy projects
Consumer Protection Act 68 of 2008: Protection of consumer rights in commercial agreements, including fair pricing and contract terms
Income Tax Act 58 of 1962: Tax implications and potential incentives for renewable energy projects, including Section 12B allowing accelerated depreciation for renewable energy assets
NERSA Licensing Regulations: Regulatory requirements for energy generation licensing and compliance
Grid Connection Code for Renewable Power Plants: Technical requirements for connecting renewable energy systems to the grid
Spatial Planning and Land Use Management Act 16 of 2013: Requirements for land use and development permissions for solar installations
Companies Act 71 of 2008: General corporate law requirements affecting commercial contracts and business operations
Value Added Tax Act 89 of 1991: VAT implications for electricity supply and renewable energy equipment
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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