Exemple De Power Purchase Agreement

Synthetic PPPs distribute physical electricity flows and financial flows, allowing even more flexible contracts to be developed. Under a synthetic PPP (also known as SPPA), as in a physical PPP, the producer and buyer agree to a price per kilowatt-hour of electricity. However, since the generation facility, electricity is not delivered directly to the consumer. It is the producer`s energy service provider (for example. B an electricity distributor) that adds the electricity generated to its electricity group and sells it, for example, to the electricity exchange. On the consumer side, the energy supplier (for example. B a utility) benefits the AAE partner from an energy performance that corresponds exactly to that which the producer provided to its service provider, for example by purchasing on the electricity exchange. In a synthetic PPA, this electric current is accompanied by a “Contract for Difference”. In this contract, the parties to the PPP agree to pay additional financial compensation corresponding to the difference between the spot price (which paid the electricity flows) and the price negotiated between them. Each part of the PPP therefore has two cash flows (one with the service provider, the other with the AAE partner) that represent the price initially agreed in the PPP, which guarantees the desired price security for each party.

In the absence of a direct physical supply (as is the case with a local PPP) and a direct financial relationship (as in the case of an off-site AAE) between the two parties, this type of PPP offers the advantages of simplicity and low administrative burden: for example, it is ideal if the producer does not have his own fluctuation group. Or that he doesn`t want to create one. Sample power purchase Agreement C-9 output of the Facility at the Point of Delivery. Provider will install an Interval Data Recorder (IDR) with industry standard telemetry. (f) Provider will give Host regular updates, on a schedule reasonably requested by Host, on the progress of installation of the Facility and will notify Host of when Provider will begin testing of the Facility. Host will be entitled to have its representatives present during the testing process, but subject to written rules and procedures as may be established by Provider and Install. After Provider has determined, in its reasonable judgment, and has provided Host with appropriate documentation that the Facility meets the requirements of the Local Electric Utility, has been installed in accordance with all Applicable Laws, and capable of producing electricity on a continuable basis, Provider shall notify Host that installation of the Facility is complete and shall specify the Commercial Operations Date for the Facility , which may be immediately upon delivery of such notice to Host, provided however that provider will have notified Host of Provider`s lawsuit to specify the Commercial Operations Date at least ten (10) days prior to such date. All electricity produced by the Facility prior to the Commercial Operations Date will be delivered to Host and Host shall pay for such electricity at an equal rate to 75% of the rate applicable to the first year of the Operations Period, provided that Host has inspected the Facility to confirm that all necessary equipment, including metering, is in place and functioning properly.