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Power Sale Agreement

Power Sale Agreement Template for Indonesia

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Key Requirements PROMPT example:

Power Sale Agreement

"I need a Power Sale Agreement for a 50MW solar power plant in East Java, Indonesia, where my company will be selling power to PLN, with commercial operations planned to begin in March 2025, including specific provisions for renewable energy credits and carbon trading rights."

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Document background
A Power Sale Agreement is a fundamental document in Indonesia's energy sector, used to establish a long-term contractual relationship between power producers and purchasers. It is essential for any power generation project in Indonesia, whether conventional or renewable energy, and must comply with Law No. 30 of 2009 (The Electricity Law) and related regulations. The agreement typically spans 20-30 years and covers all aspects of power generation and sale, including technical specifications, pricing mechanisms, operational requirements, and risk allocation. It's particularly crucial for independent power producers (IPPs) seeking to develop power projects in Indonesia, as it provides the foundation for project financing and establishes the revenue stream for the project. The document must address specific Indonesian regulatory requirements, including PLN's role as the primary power purchaser, local content requirements, and environmental compliance standards.
Suggested Sections

1. Parties: Identification of the power seller and purchaser, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, including project overview and regulatory framework

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Sale and Purchase Obligations: Core obligations of both parties regarding the sale and purchase of power

5. Term and Effectiveness: Duration of the agreement, conditions precedent, and effective date

6. Facility Development and Construction: Requirements and milestones for power facility construction and development

7. Testing and Commissioning: Procedures for testing and commissioning the power facility

8. Operation and Maintenance: Standards and requirements for facility operation and maintenance

9. Metering and Recording: Requirements for power measurement and recording

10. Billing and Payment: Payment terms, invoicing procedures, and dispute resolution for payments

11. Force Majeure: Definition of force majeure events and their consequences

12. Default and Termination: Events of default, cure periods, and termination procedures

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage and terms

15. Assignment and Security: Rules for assignment and creation of security interests

16. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and entire agreement

Optional Sections

1. Change in Law: Procedures for addressing changes in applicable laws and regulations - include when regulatory environment is volatile

2. Carbon Credits: Allocation of carbon credits or other environmental attributes - include for renewable energy projects

3. Government Guarantees: Terms related to government support or guarantees - include when required by lenders or investors

4. Local Content Requirements: Provisions regarding local content requirements - include when required by Indonesian regulations

5. Grid Stability and Curtailment: Provisions for grid stability and curtailment rights - include for large power facilities

6. Fuel Supply: Terms related to fuel supply and quality - include for thermal power plants

7. Step-in Rights: Lender's step-in rights and procedures - include when project financing is involved

8. Emergency Procedures: Special procedures for emergency situations - include for critical power infrastructure

Suggested Schedules

1. Technical Specifications: Detailed technical specifications of the power facility

2. Testing Procedures: Detailed procedures for testing and commissioning

3. Tariff and Payment Calculations: Detailed formulas and methods for calculating payments

4. Minimum Functional Specifications: Required technical and operational standards

5. Performance Standards: Required performance levels and measurement methods

6. Grid Connection Requirements: Technical requirements for grid connection

7. Land and Site Details: Details of the project site and land rights

8. Form of Performance Security: Template for performance security documents

9. Operating Procedures: Detailed procedures for day-to-day operations

10. Environmental and Social Requirements: Environmental and social compliance requirements

11. Insurance Requirements: Detailed insurance requirements and minimum coverage

12. Governmental Approvals: List of required permits and approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions


































































Clauses









































Relevant Industries

Energy

Power Generation

Utilities

Infrastructure

Renewable Energy

Natural Resources

Industrial

Manufacturing

Public Sector

Project Finance

Relevant Teams

Legal

Operations

Commercial

Finance

Risk Management

Environmental Compliance

Technical Operations

Project Development

Regulatory Affairs

Business Development

Investment

Contract Management

Relevant Roles

Chief Executive Officer

Project Director

Power Plant Manager

Legal Counsel

Energy Regulatory Specialist

Commercial Manager

Technical Director

Chief Financial Officer

Risk Manager

Operations Manager

Environmental Compliance Officer

Grid Connection Manager

Contract Administrator

Business Development Director

Investment Manager

Project Finance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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