The Power Purchase Agreement Wind template is essential for wind power projects in Indonesia's growing renewable energy sector. It serves as the fundamental commercial agreement between an Independent Power Producer developing and operating a wind power facility and PT PLN (Persero) as the state electricity company. The document is designed to comply with Indonesian regulatory requirements, including the Electricity Law and renewable energy regulations, while addressing specific characteristics of wind power generation such as intermittency and technical requirements. This agreement type is crucial for Indonesia's renewable energy targets and includes provisions for project development, operation, maintenance, pricing, and risk allocation. It's particularly relevant given Indonesia's increasing focus on renewable energy development and the government's commitment to expanding clean energy sources in the national energy mix.
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1. Parties: Identification of the power producer (seller) and the power purchaser (typically PLN in Indonesia)
2. Background: Context of the agreement, including project location, capacity, and regulatory framework
3. Definitions: Detailed definitions of technical, financial, and legal terms used throughout the agreement
4. Sale and Purchase Obligations: Core obligations including commitment to sell/purchase electricity, exclusivity provisions
5. Term and Termination: Duration of the agreement, conditions for extension, and termination rights
6. Construction and Development: Requirements and timeline for facility construction, testing, and commissioning
7. Commercial Operation: Conditions for achieving commercial operation date and related procedures
8. Operating Requirements: Technical and operational standards, maintenance requirements
9. Metering and Testing: Requirements for measuring delivered electricity and testing procedures
10. Billing and Payment: Payment terms, calculations, invoicing procedures, and dispute resolution
11. Force Majeure: Definition of force majeure events and consequences
12. Insurance: Required insurance coverage and related obligations
13. Assignment and Change of Control: Conditions for transfer of rights and change in ownership
14. Dispute Resolution: Procedures for resolving disputes under Indonesian law
15. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Direct Agreement: Required if project financing is involved, addressing lender's step-in rights
2. Carbon Credits: Optional section for allocation of carbon credits or other environmental attributes
3. Local Content Requirements: Required if specific local content obligations apply under Indonesian regulations
4. Grid System Emergency: Optional detailed procedures for grid emergencies and curtailment
5. Deemed Generation: Optional provisions for payment during grid unavailability or curtailment
6. Performance Security: Required if specific performance guarantees or bonds are needed
1. Facility Description: Technical specifications of the wind power facility
2. Site Description: Detailed description and maps of project location
3. Testing Procedures: Detailed procedures for testing and commissioning
4. Tariff and Payment Calculations: Detailed pricing formula and payment calculations
5. Minimum Functional Specifications: Technical requirements for the facility
6. Grid Connection Requirements: Technical specifications for grid interconnection
7. Performance Standards: Required operational performance metrics
8. Form of Construction Security: Template for construction period security
9. Form of Operating Security: Template for operation period security
10. Insurance Requirements: Detailed list of required insurance coverage
11. Environmental and Social Requirements: Environmental and social compliance requirements
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