This Wind Energy Power Purchase Agreement (PPA) template is utilized when a business or organization wishes to secure a stable, long-term source of clean energy from a wind farm without the need for upfront capital investment in wind turbines. This PPA is a document where the Power provider owns the wind farm and equipment but sells the energy it generates to a third-party.
Affected Property: (Property.Name)
Affected Address: (Property.Street) (Property.City) (Property.State) (Property.Zip)
Wind Farm Location: (WindFarm.Name)
Wind Farm Address: (WindFarm.Street) (WindFarm.City) (WindFarm.State) (WindFarm.Zip)
This wind energy power purchase agreement is between [Client.FirstName] [Client.LastName] (“Client”) and [PowerProvider.FirstName] [PowerProvider.LastName] (“Power Provider”), which goes into effect on the (Begin.Date) (“Effective Date”). The agreement is valid for (Number) years until (End.Date) (“Date of Termination”). This document refers collectively to the Client and Power Provider as “Parties.”
The Power Provider agrees to complete the commission and construction of (WindEnergy.Equipment) (“Wind Energy Equipment”), which encompasses (Equipment.Name), (Project.Description), at (WindFarm.Location), which generates approximately (Project.EnergyOutput).
The Power Provider aims to complete the Project Operations by the prospective installation date of (Date) (“Operation Date”).
The Power Provider agrees to make available and sell the Energy Output of this Wind Energy Equipment to the Client.
The Client wishes to purchase the Energy Output of this Wind Energy Equipment from the Power Provider, pursuant to the terms of this agreement.
“Client” is the buyer of electricity and is located at [Client.StreetAddress] [Client.City] [Client.State] [Client.PostalCode] .
“Energy Delivery Point” is the point that delivers the energy to the Client.“Energy Output” is the total energy the Client use that is generated by the wind farm and measured using a meter.
"kWh" means kilowatt hour. “kWp” means kilowatt-rated power. “MW” means megawatt, which is 1,000 kW.“Power Provider” as the developer and seller of energy, located at [PowerProvider.StreetAddress] [PowerProvider.City] [PowerProvider.State] [PowerProvider.PostalCode] .
“Project Operations” is when the Power Provider i) completes the construction, maintenance, and repairs of the Wind Energy Equipment and ii) uses the appropriate meter or meters to deliver wind energy to the Client at the specified location or locations.
Project Operation Date” refers to when fully functioning Wind Energy Equipment is completed thanks to the Operation services and installation.
“Wind Energy Equipment” is the wind power generation equipment, which includes connections, switches, conduits, controls, meters, wires, and other equipment to ensure a fully-functioning Energy Delivery Point or Points to provide the Client with wind energy.
Per the terms and conditions of this wind energy power purchase agreement, the Client will pay a fixed rate for the Energy Output used per kW/MW. The Parties can evaluate this amount after (Number) years and negotiate a new rate between Parties.
There are two considerations to take with this type of contract. The first is whether it’s an offsite or onsite location which makes this contract an onsite or offshore wind PPA respectively. This means whether the wind turbines are located on the Client’s Property or outside.
The Client agrees that the Wind Energy Equipment will be built at (WindFarm.Location) as part of the offsite/onsite agreement.
There’s physical delivery, where the off-taker receives the physical electricity and EACs (Energy Attribute Certificates) bundled with the underlying power. There’s also financial/virtual delivery, where the off-take only receives the EACs for the agreed-upon volume. Which model you use depends on who’ll be balancing the grid and whether there’s a monopoly on power suppliers in a state.
The Client agrees that they’ll purchase 1) the entirety of the Energy Output the wind farm generates or 2) the (Number) kW/MW of the generated energy. This energy is delivered using physical/financial methods, and the Client/Power Provider will cover the costs of balancing the grid to the relative market value.
The Client must pay $(Rate.Amount) per kW/MW received to the Power Provider by the 1st of each month. If the Power Provider does not receive the payment by the 5th or by (Number) days after the due date, then the Power Provider may charge an additional late fee of $(Late.Fee).
The Power Provider understands that they are responsible for sending monthly invoices featuring detailed breakdowns, calculations, and highlights of the owed amount. The Power Provider must generate a special invoice that breaks down all the owed amounts and payment delay details in the case of default.
Payments must be made in United States Dollars (USD) using (Payment.Method1) or (Payment.Method2). Should the Client mail the payment as a check, they must ensure it reaches the Power Provider before or on the 1st of each month to avoid late fees.
The Power Provider owns the Wind Energy Equipment and is responsible for performing bi-annual/annual maintenance on the Wind Energy Equipment. These maintenance checks include but are not limited to cleaning the wind turbines, checking wires and connections, etc.