Sector:

Clean Technology (Energy)

Name of Agreement:

Standard Power Purchase Agreement (PPA) for Photovolatic Solar Power

Type of Agreement:

Power Purchase Agreement (PPA)

Year of Agreement/ Draft:

2009

Principal Author(s)

Southern California Edison

Reviewed by:

Mark Moseley, LEGPS, World Bank; Sara Sigrist, LEGPS, World Bank

Purpose and Context:

This standard Power Purchase Agreement (PPA) for a 250 megawatts solar photovoltaic plant was developed as part of Southern California Edison’s Request for Proposal for its solar energy program. (See Attachment B, Page 14-46)

Circumstances where this contract may be appropriate:

This PPA was developed under a regulated tariff which provides significant operational details governing the relationship between the generator and system operator that may not be clear in the text of the PPA itself.  It is also important to note California's regulated environment includes independent system operators and particular environmental requirements.

Drafted for common law/ civil law jurisdiction:

Common Law

MainFeatures:

This PPA is based on Southern California Edison's CREST Agreement, which drafted in accordance with California-specific AB 1969 standard offer contracts. It is not meant to be negotiated.

• 20 years
• Payments are monthly based on metered amounts;
• Product price is weighted by an energy payment allocation factor for the time of use period being calculated;
• No performance assurance requirements;
• No annual energy delivery obligation;
• No energy replacement damage amount;
• SCE reserves termination rights in the standard 20-year PPA if a project does not achieve its Term Start Date, if there is abandonment of the generating facility, if there is no output for twelve consecutive months, if a project participates in the CSI or any net energy metering tariff, or if a project is later determined to trigger a transmission network upgrade.

Key changes from the CREST Agreement include:

• Product price is based on competitive offers through an Request for Offer (RFO);
• Requirement to summit to national energy regulator's jurisdicational interconnection (here the Federal Energy Regulatory Commission (FERC)) and the Wholesale Distribution Access Tarrif, if applicable;
• Delivery is at the first point of interconnection with the California Independent System Operator (CAISO) controlled transmission system (at the Pnode of the generating facility as defined in CAISO tariff);
• Development security deposit of $20/kW of Gross Power Rating is required;
• Updated insurance requirements will be included;
• Prevailing wage requirement consistent with utility-owned generation for photo-volatic generator installation and maintenance;
• SCE will have a buyout option at the end of the contract; and,
• California Public Utilities Commission approval is requested through a Tier 2 advice letter for all PPAs resulting from each RFO

Possible additional provisions that it might be appropriate to include:

Provisions that may not be advisable to replicate/ may need further thought:

This PPA was developed under a regulated tariff which provides significant operational details governing the relationship between the generator and system operator that may not be clear in the text of the PPA itself.  It is also important to note California's regulated environment includes independent system operators and particular environmental requirements.

Provisions of wider general use:

Experience Since Coming Into Force (including any amendments)/ if draft form, whether it has been applied:

Tracking Number:

Ref #: SCE Standard PPA for PV Solar Power  (July, 2009)