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Corporate PPA Template for Denmark

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Corporate PPA

Document background
The Corporate PPA is essential for organizations seeking to secure long-term electricity supply while potentially meeting sustainability goals in Denmark. This document type has gained significance with the growth of renewable energy projects and corporate sustainability initiatives in the Danish market. It is particularly relevant for companies with significant electricity consumption looking to lock in electricity prices and secure green energy supply. The agreement must navigate Danish energy sector regulations, including the Electricity Supply Act and Renewable Energy Act, while also considering EU energy market rules. A Corporate PPA typically includes detailed provisions on energy delivery, pricing mechanisms, regulatory compliance, and risk allocation, with specific attention to Danish market conditions and grid requirements. The document is crucial for both renewable energy generators seeking project financing and corporate buyers pursuing energy security and sustainability objectives.
Suggested Sections

1. Parties: Identification of the power producer/seller and corporate buyer

2. Background: Context of the agreement, including facility details and parties' objectives

3. Definitions and Interpretation: Key terms, calculation methodologies, and interpretation rules

4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including volume commitments

5. Term and Termination: Duration of agreement, conditions for extension and early termination rights

6. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures

7. Metering and Communications: Requirements for measuring and reporting electricity generation/consumption

8. Credit Support: Security requirements, parent company guarantees, or other credit support mechanisms

9. Force Majeure: Definition and consequences of force majeure events

10. Change in Law: Procedures for addressing regulatory changes affecting the agreement

11. Liability and Indemnities: Allocation of risks and limitation of liability provisions

12. Confidentiality: Protection of confidential information and permitted disclosures

13. Governing Law and Disputes: Choice of Danish law and dispute resolution mechanisms

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

Optional Sections

1. Green Certificates and Environmental Attributes: Used when the corporate buyer wants to claim environmental benefits and certificates

2. Private Wire Arrangements: Included when direct transmission line between generator and buyer is established

3. Forecasting and Scheduling: Required for projects where generation forecasting is crucial for operations

4. Construction and Commissioning: Included when the generating facility is not yet operational

5. Grid Connection: Required when specific grid connection obligations need to be allocated

6. Performance Guarantees: Used when specific generation performance levels are guaranteed

7. Buy-Out Rights: Optional provisions for the corporate buyer to purchase the generating facility

8. Insurance: Detailed insurance requirements when not covered in general obligations

Suggested Schedules

1. Facility Description: Technical specifications of the generating facility

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

3. Operating Parameters: Technical and operational requirements for the facility

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

5. Form of Direct Agreement: Standard form for direct agreements with lenders

6. Communication Protocols: Procedures for operational communications and notifications

7. Performance Testing: Testing procedures and acceptance criteria

8. Form of Parent Company Guarantee: Standard form of parent company guarantee if required

9. Planned Maintenance Schedule: Schedule of planned maintenance periods and procedures

10. Grid Connection Details: Technical specifications for grid connection

Authors

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Relevant Industries
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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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