Power Purchase Agreement
Power Purchase Agreement
This Power Purchase Agreement ("AGREEMENT") is made on this Day of [DATE], BETWEEN [YOUR NAME], herein referred to as ("Seller") and [BUYER NAME], herein referred to as ("Buyer").
WHEREAS
The Seller operates a renewable energy project and is in the business of producing electricity from renewable sources ("Renewable Energy"), and the Buyer is interested in purchasing such Renewable Energy.
1. AGREEMENT PURPOSE
The purpose of this Agreement is to define the terms and conditions under which the Seller will sell, and the Buyer will buy, the Renewable Energy produced by the Seller’s renewable energy project. The Renewable Energy from the project will be sold under a Power Purchase Agreement (PPA).
2. CONTRACT TERM
The term of the Agreement shall begin from the date of signing and shall continue in full force and effect for a period of [CONTRACT TERM] months unless it is extended by mutual written consent of the parties.
3. PURCHASE PRICE AND PAYMENT
The Buyer agrees to pay the Seller for the Renewable Energy at a pre-determined rate defined in the PPA. The total purchase cost shall be assessed by the total net generation of the Renewable Energy Project and remitted to the Seller on a [MONTHLY/QUARTERLY] basis.
4. DELIVERY AND ACCEPTANCE
The Seller will ensure that the Renewable Energy Project has the capacity to generate and deliver the agreed upon Renewable Energy at all times. The Buyer shall accept the Renewable Energy as generated and delivered by the Seller unless it fails to meet the agreed upon standards.
5. DEFAULT AND REMEDIES
If either party fails to comply with its obligations under this Agreement, that party shall be deemed to be in default. The non-defaulting party may then exercise legal remedies in accordance with relevant laws and regulations.
6. GOVERNING LAW
This Agreement, along with all of its components, should be both interpreted and directed under the jurisdiction of the laws of [THE JURISDICTION]. Consequently, any disputes or legal matters arising from this Agreement will be settled by these laws.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
[YOUR NAME]
[DATE SIGNED]
[BUYER NAME]
[DATE SIGNED]
