Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 118
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4. OFFTAKE/PPA
4.1 Offtake, remuneration and
tariff scheme
Under the Renewable Energies Act, a socalled "direct marketing" concept applies,
which basically means that the produced
energy is sold to a third party, unless the
electricity is used in the direct vicinity of
the OWTG and is not transmitted through
the grid. In more practical terms this means
that the produced electricity is sold under a
power purchase agreement (PPA).
In case the operator of the OWTG claims the
market premium (or feed-in-tariff) payment,
a so-called "mandatory direct marketing"
applies and payments are only made for
calendar months during which the electricity is directly sold under a PPA. Operators
of OWTGs may also choose to refrain from
claiming MP payments and still sell the electricity under a PPA (so called "other direct
marketing").
The Renewable Energies Act does not
contain any specific stipulations for the
content of such PPAs, but there is a certain
established market practice as to the usual
and required contents.
Germany
4.2 Consequences of a project delay
The consequences of a delayed project
completion with regard to the offtake
regime in general depend on the respective
provisions in the PPA. Usually a delay of the
project or OWTGs would, after elapse of a
grace period, entitle the offtaker to demand a reasonable adjustment of the price.
Additionally, termination remedies would
normally be available for prolonged force
majeure events.
With regard to the entitlement to receive
incentive payments under the Renewable
Energies Act, such entitlement is conditional
upon the commissioning of the respective
OWTG and is valid for 20 years from that
date so that project delays do not have a
particular negative consequence. Project
delays against the statutory project realisation timeline are subject to the penalties
and consequences described above under
section 2.4.
