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Energy Storage Ppa Template for England and Wales

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Key Requirements PROMPT example:

Energy Storage Ppa

"I need an Energy Storage PPA for a 50MW battery storage facility in Manchester that will provide both capacity market services and grid balancing, with operations expected to commence in March 2025."

Document background
The Energy Storage PPA is essential for projects involving grid-scale energy storage facilities in England and Wales. This agreement type has emerged as storage technologies become increasingly crucial for grid stability and renewable energy integration. The Energy Storage PPA addresses specific operational characteristics of storage facilities, including state of charge management, round-trip efficiency, and multiple charging/discharging cycles. It incorporates requirements from UK electricity market regulations and provides commercial frameworks for various revenue streams including arbitrage, ancillary services, and capacity market participation.
Suggested Sections

1. Parties: Identification and details of contracting parties including full legal names, registered addresses, and company numbers

2. Background: Context of the agreement, including facility description, purpose of the agreement, and relevant regulatory context

3. Definitions: Comprehensive definitions of technical and legal terms used throughout the agreement

4. Facility Description: Technical specifications and characteristics of the storage facility including capacity, response times, and location

5. Operating Parameters: Detailed operating conditions, minimum and maximum capacity requirements, availability requirements, and performance standards

6. Testing and Commissioning: Requirements for initial testing, periodic testing, and performance verification procedures

7. Metering and Communications: Requirements for metering equipment, data collection, and communications protocols

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

9. Performance Security: Requirements for performance bonds, parent company guarantees, or other security arrangements

10. Term and Termination: Contract duration, renewal provisions, termination rights, and consequences of termination

11. Force Majeure: Definition of force majeure events and their consequences

12. Liability and Indemnification: Allocation of risks, liability caps, and indemnification obligations

Optional Sections

1. Capacity Market Provisions: Terms relating to Capacity Market participation, including obligations and revenue sharing arrangements

2. Ancillary Services: Terms governing the provision of additional grid services such as frequency response or voltage control

3. Development Conditions: Construction milestones, commissioning requirements, and conditions precedent for facilities not yet operational

4. Grid Connection: Specific provisions relating to grid connection requirements and responsibilities

5. Revenue Stacking: Terms governing multiple revenue streams and their interaction

Suggested Schedules

1. Technical Specifications: Detailed technical parameters including capacity, efficiency, response times, and degradation limits

2. Testing Procedures: Detailed testing protocols for commissioning and ongoing performance verification

3. Operating Procedures: Step-by-step operational procedures, maintenance requirements, and emergency protocols

4. Pricing Schedule: Detailed pricing formulae, adjustment mechanisms, and worked examples

5. Metering Requirements: Technical specifications for metering equipment and data validation procedures

6. Form of Performance Security: Template forms for required security instruments

7. Communications Protocol: Detailed procedures for operational communications and data exchange

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses



































Industries

Electricity Act 1989: Primary legislation governing electricity generation, transmission, and supply. Covers licensing requirements, grid connection regulations, and fundamental power generation and supply provisions.

Energy Act 2013: Key legislation introducing Electricity Market Reform, including Capacity Market rules and Contracts for Difference framework for energy projects.

Electricity Storage Facilities (Exemption) Order 2019: Specific regulation addressing electricity storage facilities, providing certain exemptions and defining operational parameters for storage assets.

Grid Code: Technical code specifying the operational requirements for power generators and storage facilities connected to the transmission system.

Distribution Code: Technical requirements for connection and use of the electricity distribution network by storage facilities.

Balancing and Settlement Code (BSC): Rules governing electricity balancing and settlement arrangements, crucial for storage facilities participating in the electricity market.

Connection and Use of System Code (CUSC): Framework of commercial arrangements between National Grid and users of the transmission system, including connection terms and charging methodologies.

Climate Change Act 2008: Establishes the framework for the UK's climate change commitments and carbon reduction targets, affecting energy storage deployment.

Environmental Protection Act 1990: Environmental safeguards and requirements that may apply to energy storage installations.

Ofgem Regulations: Regulatory requirements and guidance from the Office of Gas and Electricity Markets, including specific provisions for storage facilities.

National Grid ESO Requirements: Technical and operational requirements set by the Electricity System Operator for grid-connected storage facilities.

Capacity Market Rules: Specific rules governing participation in the Capacity Market, including requirements for energy storage providers.

Competition Law: General competition law principles affecting market participation and commercial arrangements in the energy sector.

Health and Safety Regulations: Safety requirements and standards applicable to energy storage facilities, including battery storage safety protocols.

Planning Permission Requirements: Local and national planning regulations affecting the construction and operation of energy storage facilities.

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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