Who needs this service
This service is for a company buying electricity or entering into a financial power purchase agreement, for a generator selling its output and for an investor preparing an installation for commissioning. Work can start with the first draft of the contract, with the comments of the other side or with an amendment to an agreement already in force. Scope and fee are agreed before any work starts and a consultation is not required.
Scope of the analysis
We set out the model, physical delivery or financial settlement, and the roles of the generator, the buyer and the entities servicing performance. We review the volume commitments, the tolerances, the divergence between forecast and actual output and the treatment of missing energy and surplus. On price, we review indexation, the source data, negative prices, additional charges, balancing and the procedure for challenging a settlement. On availability, we review delayed commissioning, outages, servicing, production curtailment and information duties. Guarantees of origin are covered separately: the required features, their transfer, cancellation, confirmation and the consequences of non-performance.
Security and the end of the contract
Liability caps, guarantees, sureties, a change of law, assignment of the agreement and the settlement due after the end of cooperation belong to a single group of questions, because they decide what the contract is worth when performance goes wrong. Clauses are assessed against the other documents covered by the engagement. An obligation to deliver from a stated date, for example, has to be read together with the commissioning schedule of the installation.
Limits of the scope
The assessment of whether a price makes economic sense requires data and business assumptions, which a review of the wording does not replace. Legal work does not automatically include a tax opinion, accounting advice, price modelling, a technical study or full legal due diligence of the investment. Concluding a contract requires the agreement of both parties, and legal support is not a guarantee of savings, of financing or of the profitability of the project.