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This Virtual PPA template is designed for use in New Zealand's electricity market where corporate buyers seek to support renewable energy development while managing their electricity costs. The document is particularly suitable for large corporate consumers looking to hedge against electricity price volatility and demonstrate their commitment to sustainability, without physically taking delivery of electricity. The agreement includes comprehensive provisions for financial settlement, environmental attributes, and risk allocation, all tailored to comply with New Zealand's regulatory framework. It addresses key requirements under the Electricity Industry Act 2010 and Financial Markets Conduct Act 2013, while providing flexibility to accommodate specific project requirements and corporate objectives. This document type is typically used when the renewable energy generator and corporate buyer are operating in different regions of New Zealand's electricity market, or when physical delivery is impractical or undesired.

1. Parties: Identifies the contracting parties - typically the generator/seller and the corporate buyer

2. Background: Sets out the context of the agreement, including the renewable energy project details and the parties' objectives

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Term and Conditions Precedent: Specifies the contract duration, start date, and any conditions that must be met before the agreement becomes effective

5. VPPA Structure and Settlement: Details the financial settlement mechanism, strike price, and reference price arrangements

6. Metering and Reporting: Specifies requirements for measuring and reporting generation output and market prices

7. Billing and Payment: Sets out invoicing procedures, payment terms, and dispute resolution for payments

8. Credit Support: Describes required financial security arrangements and credit requirements

9. Environmental Attributes: Addresses ownership and transfer of renewable energy certificates or environmental benefits

10. Force Majeure: Defines force majeure events and their consequences

11. Default and Termination: Specifies events of default, remedies, and termination rights

12. Liability and Indemnities: Allocates risks and establishes liability limitations

13. Dispute Resolution: Sets out procedures for resolving disputes

14. Confidentiality: Protects confidential information

15. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment