As businesses shift towards more sustainable practices, renewable energy sources are becoming increasingly popular. However, navigating the legal requirements of power purchase agreements (PPAs) can be challenging. This is where the EEI Master Power Purchase and Sale Agreement (PPSA) comes into play.
The EEI Master PPSA is a widely accepted document that outlines the terms and conditions of renewable energy procurement. The latest version, 2.1, was released by the Edison Electric Institute (EEI) in 2020 and contains several important updates.
One of the key changes in version 2.1 is the inclusion of a Greenhouse Gas (GHG) Emission Factor Schedule. This schedule outlines how the seller will calculate the GHG emissions associated with the energy being sold. This is an important addition as more and more companies are looking to reduce their carbon footprint and need accurate data to do so.
Another update in version 2.1 is the inclusion of a Force Majeure clause. This clause outlines circumstances beyond the control of both parties that could prevent performance under the agreement. This is important as renewable energy generation can be impacted by external factors such as extreme weather events.
The latest version of the EEI Master PPSA also includes revisions to the Default and Termination sections. These changes clarify the conditions under which either party can terminate the agreement and what happens in the event of default. This provides greater clarity and reduces the risk of disputes arising.
Finally, version 2.1 of the EEI Master PPSA includes updates to the Notices section. This section outlines the methods and timelines for delivering notices, which is important for ensuring effective communication between parties.
In conclusion, the EEI Master Power Purchase and Sale Agreement Version 2.1 is a valuable tool for companies looking to procure renewable energy. Its updates provide greater clarity and accuracy while reducing the risk of disputes arising. As businesses continue to prioritize sustainability, having a clear and effective PPA is essential.