7/4/2017 Key Parts of a Power Purchase Agreement | NBET

Key Parts of a Power Purchase

Agreement

Tari Structure Provides the details of how the tari is

calculated. It must be fair to all parties.

Risk Allocation Identi es all project related risks and

allocates these risks to parties best able to bear the risks.

Conditions Precedent Provides all the conditions

precedents (CPs) which either the Buyer or Seller must

satisfy before the PPA can become e ective.

Tenor of PPA A standard NBET PPA has a 20 year tenor.

There are clauses within the PPA to handle early

termination due to either a Buyers or Sellers default

Project Documents All documents that are connected

to the PPA such as Engineering, Procurement and

http://nbet.com.ng/developers/key-parts-of-a-power-purchase-agreement/ 1/3
7/4/2017 Key Parts of a Power Purchase Agreement | NBET

Construction, Gas Supply Agreement, Gas Transport

Agreement, Operations and Maintenance, Long Term

Service Agreement, Financing documents etc.

Commissioning & Testing procedure Contains a set of

guidelines for plant testing and commissioning.

Operation & Maintenance Contains details of the

maintenance and operational obligations of the Seller

throughout the tenor of the PPA.

Con ict Resolution Indicates clear procedures for

con ict resolution in case of disputes and/or con icts on

invoices.

Metering Sets out the rules surrounding metering.

However, in case of con icts between PPA provisions and

the metering code, the metering code supersedes.

Liability & Indemni cation Enumerates the parties

responsible for certain failures and provides

indemni cation to both parties.

Insurance States the required insurance coverage to be

put in place by seller and how the proceeds will be

administered.

Scheduling Notices Provides a methodology by which

the Buyer nominates for the dispatch of Net Electrical

Output to be made available at the delivery point by the

Seller.

Force majeure Provides details of events to be

considered as force majeure and possible payments during

the occurrence of such events.

http://nbet.com.ng/developers/key-parts-of-a-power-purchase-agreement/ 2/3
7/4/2017 Key Parts of a Power Purchase Agreement | NBET

ABOUT NBET

Nigerian Bulk Electricity Trading Plc (NBET) aka the Bulk Trader,
is a wholly Federal Government of
Nigeria (FGN) owned company incorporated on July 29 2010

CONTACT US

Address:

8th Floor, Bank of Industry Building, O Herbert Macaulay Way,

Central Business District, FCT, Abuja.

Telephone:

+23494605630,+23494605630

Email:

info@nbet.com.ng

OTHER LINKS

Contact Us

Privacy Policy

Terms Of Use

Sitemap

RECENT NEWS

MIT professor 'rejects' appointment as NERC chairman

http://nbet.com.ng/developers/key-parts-of-a-power-purchase-agreement/ 3/3