Arvin Halkhoree is a lawyer with Juristconsult Chambers with a particular interest in the energy and energy sector. In July 2014, he participated in a three-day DLA Africa Training Retreat in Rwanda. Key transactions in this area include (i) the legal and regulatory advice on the placement of exploration risk policies for a geothermal project in Kenya and (ii) advising a local consortium on the financing, construction, supply and commissioning of a large wind farm valued at $79 million. While this is not an exhaustive list, it is important to remember that agreements are flexible to meet the needs of the energy customer. It is therefore important to give priority to the areas of the AEA where you are ready to defend yourself and where you will assert yourself. With so much to consider, perhaps you`re thinking about whether it`s worth getting upset about. Here are some reasons why you should work with a developer like Distributed Energy for your energy needs: A central topic of discussion in an AAE is pricing; The pricing will guarantee cash flow and allow revenue to be forecast over the life of the project. Historically, pricing has been flat-rate, but we are seeing an emerging trend in renewable energy; buyer who makes a partial down payment or investment in the energy project. For projects using non-renewable energy, the cost of fuel is an important component of costs and fluctuations in fuel prices should be addressed in AAEs, for example by using transit elements to make the project profitable and profitable. The AAE will set the producer`s electricity generation and supply obligations at certain points and set the price at which this benefit is acquired.
Power Purchase Agreement (AAE) From a legal perspective While this sounds great, it is important to check and understand the content of the AAE and ensure that you benefit from this transaction in the short and long term. Here are some things you need to be careful as an energy customer while you`re watching your AAE: another important discussion is about development bricks, the implementation schedule and the commercial operation date of the energy project.