Power Purchase Agreement Template

This Power Purchase Agreement (“Agreement”) is entered into on [Date], by and between:

Seller (Producer): [Company Name]
Address: [Address]
Contact Information: [Phone, Email]

and

Buyer (Purchaser): [Company Name]
Address: [Address]
Contact Information: [Phone, Email]

Together referred to as the “Parties.”

1. Purpose

The Seller agrees to sell, and the Buyer agrees to purchase, electricity generated from [describe facility type, e.g., solar, wind, hydro] located at [Facility Location].

2. Term

• Start Date: [Start Date]

• End Date: [End Date]

• Renewal: [Automatic renewal/Option to extend].

3. Energy Supply and Delivery

• Capacity: [MW or kWh per month/year].

• Delivery Point: [Specify grid connection or delivery location].

• Scheduling: [Detail how electricity is scheduled and dispatched].

4. Pricing and Payment

• Price Structure: [Fixed price per kWh / Variable tied to market index / Hybrid].

• Billing Cycle: [Monthly/Quarterly].

• Late Payment Fee: [Specify amount or interest rate].

• Price Adjustments: [Escalation clauses, inflation adjustments, or renegotiation terms].

5. Performance Guarantees

The Seller guarantees that the Facility will maintain a minimum availability of [X%]. Failure to meet this threshold may result in penalties or credits to the Buyer.

6. Metering and Measurement

Electricity delivered shall be measured at the Delivery Point by calibrated meters, maintained in accordance with industry standards. Meter data will be shared with both Parties.

7. Environmental Attributes and Credits

The Seller assigns any renewable energy certificates (RECs) or environmental credits associated with the electricity sold under this Agreement to the [Buyer/Seller], unless otherwise specified.

8. Force Majeure

Neither Party shall be liable for failure to perform obligations due to events beyond reasonable control, including natural disasters, strikes, or government actions.

9. Default and Remedies

• Events of Default: [Non-payment, failure to deliver, failure to purchase].

• Remedies: [Termination rights, damages, or liquidated damages].

10. Termination

This Agreement may be terminated early by:

• Mutual agreement of the Parties.

• Buyer default in payment obligations.

• Seller failure to deliver electricity for [X days/months].

11. Governing Law

This Agreement shall be governed by the laws of [State/Country].

12. Entire Agreement

This Agreement represents the full and complete understanding between the Parties and supersedes prior negotiations or written communications.

Signatures

Seller: ___________________________ Date: _________
Name/Title: [Authorized Representative]

Buyer: ___________________________ Date: _________
Name/Title: [Authorized Representative]