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A Corporate Power Purchase Agreement is essential for businesses operating in Nigeria seeking to secure reliable electricity supply through direct procurement from independent power producers. This document type is particularly relevant given Nigeria's power supply challenges and the growing trend toward private power solutions. The agreement structure accommodates both grid-connected and off-grid arrangements, incorporating necessary provisions for technical specifications, pricing mechanisms, and risk allocation. It ensures compliance with Nigerian electricity sector regulations while providing commercial flexibility. The document typically includes detailed provisions for payment security, force majeure events, and dispute resolution mechanisms, reflecting the specific challenges of the Nigerian operating environment. This type of agreement has become increasingly important as more Nigerian businesses seek alternative power supply arrangements to ensure operational continuity and manage energy costs.

1. Parties: Identification of the power generator/seller and the corporate buyer, including their respective legal details and representatives

2. Background: Context of the agreement, including project overview, relevant licenses, and regulatory framework

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

4. Sale and Purchase Obligations: Core obligations regarding electricity sale and purchase, including committed volumes or capacity

5. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights

6. Price and Payment Terms: Electricity pricing structure, payment mechanics, invoicing, and payment security arrangements

7. Metering and Testing: Requirements for measuring electricity delivery, testing procedures, and dispute resolution for metering

8. Delivery Point and Title: Specification of the delivery point and transfer of title/risk in the electricity

9. Technical Requirements: Technical specifications, performance standards, and maintenance requirements

10. Grid Connection: Responsibilities and requirements regarding grid connection and interaction with the transmission system

11. Force Majeure: Definition of force majeure events and consequences, particularly relevant given Nigeria's infrastructure challenges

12. Default and Remedies: Events of default, cure periods, and available remedies

13. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions under Nigerian law

14. Representations and Warranties: Standard and specific warranties from both parties

15. Governing Law: Confirmation of Nigerian law as governing law and relevant jurisdiction provisions