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Power Purchase Agreement Energy Storage Template for England and Wales

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Key Requirements PROMPT example:

Power Purchase Agreement Energy Storage

"I need a Power Purchase Agreement Energy Storage for a 50MW battery storage facility in Manchester, where we'll be selling stored energy to a major utility company with delivery starting March 2025, including provisions for capacity market participation."

Document background
The Power Purchase Agreement Energy Storage document is essential for establishing commercial relationships between energy storage facility operators and energy purchasers in England and Wales. This agreement is particularly relevant in the context of increasing grid flexibility needs and the growth of renewable energy integration. It defines the commercial and technical framework for energy storage operations, including capacity commitments, dispatch rights, and revenue mechanisms. The document is designed to comply with UK electricity market regulations and includes provisions for participation in various market mechanisms including the Capacity Market and ancillary services.
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, description of the energy storage project, and parties' intentions

3. Definitions: Comprehensive list of defined terms used throughout the agreement including technical, commercial, and legal terminology

4. Supply Obligations: Core terms regarding energy storage and supply commitments, including capacity requirements and availability guarantees

5. Pricing and Payment: Payment terms, rates, billing procedures, and invoicing requirements

6. Operating Parameters: Technical specifications, operational requirements, and performance standards

7. Metering and Testing: Requirements for metering equipment, testing procedures, and verification of supply

8. Term and Termination: Duration of agreement, renewal options, and circumstances for early termination

9. Force Majeure: Events constituting force majeure and consequences thereof

10. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations

Optional Sections

1. Capacity Market Participation: Terms governing participation in capacity market, including revenue sharing and obligations

2. Ancillary Services: Terms for providing grid balancing services and associated compensation

3. Construction and Commissioning: Terms for new facility construction, testing, and commissioning requirements

4. Change in Law: Provisions dealing with regulatory changes affecting the storage facility or market conditions

5. Trading and Optimization: Terms for energy trading activities and optimization of storage assets

Suggested Schedules

1. Technical Specifications: Detailed technical parameters of the storage facility including capacity, response times, and efficiency

2. Operating Procedures: Detailed operational procedures, protocols, and maintenance requirements

3. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment procedures

4. Performance Standards: Required performance levels, testing procedures, and performance guarantees

5. Grid Connection Details: Technical details of grid connection arrangements and compliance requirements

6. Form of Performance Security: Template for performance bonds or other security instruments

7. Communications Protocol: Procedures for operational communications and notifications between parties

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















































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Industries

Electricity Act 1989: Primary legislation establishing the framework for electricity generation, transmission, and supply including licensing requirements. Essential for PPA structure and compliance.

Energy Act 2013: Contains Electricity Market Reform provisions and Capacity Market regulations which impact energy storage operations and commercial arrangements.

Climate Change Act 2008: Sets carbon reduction commitments and environmental considerations that may affect energy storage operation and contractual obligations.

Grid Code: Technical regulatory framework specifying requirements for connection and operation, including Balancing and Settlement Code (BSC) compliance.

Distribution Code: Regulatory requirements for distribution network connection and Distribution Use of System (DUoS) charges applicable to storage facilities.

Electricity Storage Facilities Modifications 2020: Specific regulations for storage facilities including modified generation license conditions for storage operations.

Capacity Market Rules: Market framework governing participation in the Capacity Market, relevant for energy storage revenue streams.

Balancing Mechanism Rules: Rules governing participation in the Balancing Mechanism, crucial for energy storage commercial operations.

Ancillary Services Framework: Guidelines and requirements for providing ancillary services to the grid, a key revenue stream for storage assets.

Competition Act 1998: General competition law considerations affecting commercial arrangements and market behavior.

Consumer Rights Act 2015: Consumer protection legislation that may be relevant if the PPA involves supply to consumer entities.

Data Protection Act 2018: Requirements for handling personal and commercial data in the context of energy storage operations.

Planning Regulations: Local and national planning requirements affecting energy storage facility development and operation.

Health and Safety Regulations: Safety requirements and standards applicable to energy storage facility operation.

EU Retained Law: Relevant European regulations retained in UK law post-Brexit, including applicable network codes affecting energy storage.

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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