The Third Party Power Purchase Agreement is a specialized contract used in the Netherlands for structuring electricity purchase arrangements where an intermediary facilitates the transaction between power generators and end users. This document is particularly relevant in the context of renewable energy projects and corporate power procurement strategies. It addresses the complex regulatory requirements of the Dutch energy market, including compliance with the Electricity Act 1998, EU directives, and sustainable energy regulations. The agreement typically includes provisions for power delivery, pricing mechanisms, grid arrangements, and sustainability certifications. It's commonly used when organizations seek to secure long-term power supply while managing regulatory obligations and demonstrating commitment to renewable energy goals. The document can accommodate both physical delivery and virtual settlement structures, making it versatile for various business needs in the Dutch market.
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1. Parties: Identification of the power producer, purchaser, and any intermediary parties
2. Background: Context of the agreement, including facility details and purpose of the PPA
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity
5. Term and Termination: Duration of the agreement and termination provisions
6. Delivery Point and Title Transfer: Specification of where electricity is delivered and ownership transfers
7. Metering and Documentation: Requirements for measuring and recording electricity delivery
8. Price and Payment Terms: Pricing structure, invoicing, and payment conditions
9. Force Majeure: Events excusing performance and their consequences
10. Default and Remedies: Events of default and available remedies
11. Representations and Warranties: Legal assurances provided by each party
12. Regulatory Compliance: Obligations to comply with relevant laws and regulations
13. Confidentiality: Protection of confidential information
14. Dispute Resolution: Procedures for resolving disputes
15. Governing Law: Application of Dutch law and jurisdiction
16. General Provisions: Standard legal provisions including notices, amendments, and assignment
1. Grid Connection and Access: Required for physical PPAs where grid connection arrangements need specification
2. Guarantees of Origin: Required when renewable energy certificates are part of the transaction
3. Construction and Commissioning: Needed for PPAs signed before facility completion
4. Forecasting and Scheduling: Required for variable renewable energy sources
5. Performance Guarantees: Optional provisions for guaranteed generation levels
6. Change in Law: Detailed provisions for regulatory change impacts
7. Insurance: Specific insurance requirements beyond standard provisions
8. Credit Support: Required when additional financial security is needed
9. Private Wire Arrangements: Required for direct wire connections bypassing the public grid
10. Sustainability Commitments: Required when specific environmental goals are part of the agreement
1. Facility Description: Technical specifications of the generation facility
2. Pricing Mechanism: Detailed pricing calculations and adjustments
3. Operating Parameters: Technical operating specifications and requirements
4. Metering Specifications: Detailed metering requirements and procedures
5. Production Forecasts: Expected generation profiles and volumes
6. Form of Direct Agreement: Standard form for direct agreements with financiers
7. Performance Testing: Testing procedures and acceptance criteria
8. Grid Connection Details: Technical specifications for grid connection
9. Form of Guarantee: Standard form for any required guarantees
10. Calculation of Liquidated Damages: Methodology for calculating compensation for breaches
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