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NBET Power
Purchase Agreement (PPA)

Power Purchase Agreements are long-term contracts between NBET and Generation Companies that define the terms for purchasing electricity generated by producers.

Overview

NBET enters into Power Purchase Agreements with Generation Companies (GenCos) and Independent Power Producers (IPPs) to procure electricity in bulk. These agreements provide a stable and bankable framework that supports investment, efficient operations and reliable power supply to Distribution Companies and eligible customers.

Download PPA Template

View or download the standard NBET Power Purchase Agreement template.

Key Parts of a Power Purchase Agreement

Our PPAs are structured to allocate risks appropriately, protect both parties and ensure efficient electricity delivery.

01. Tariff Structure

Provides the details of how NBET will pay for the duration the PPA is calculated.

02. Risk Allocation

Identifies all project related risks and allocates these risks to parties best able to bear them.

03. Conditions Precedent

Provides conditions either NBET or the plant owner must satisfy before the PPA becomes effective.

04. Tenor of PPA

A standard NBET PPA has a 20-year tenor with clauses for early termination due to default.

05. Project Documents

Includes EPC, GSA, GTA, O&M, LTSA, financing documents and other connected project documents.

06. Commissioning & Testing Procedure

Contains guidelines for plant testing and commissioning.

07. Operation & Maintenance

Contains maintenance and operational obligations of the Seller throughout the PPA tenor.

08. Conflict Resolution

Indicates clear procedures for dispute and invoice conflict resolution.

09. Metering

Sets out metering rules. Where conflicts occur, the metering code supersedes PPA provisions.

10. Liability & Indemnification

Provides responsibilities for certain failures and indemnification to both parties.

11. Insurance

States required insurance coverage and how proceeds will be administered.

12. Scheduling Notices

Provides the methodology by which NBET nominates dispatch of Net Electrical Output.

13. Force Majeure

Provides details of force majeure events and possible payments during such events.

Important Note

These key provisions ensure that NBET PPAs promote bankability, transparency and efficient risk management for a sustainable power sector.

Related Agreements

NBET Interim Agreements for Power Purchase

Interim arrangements that provide a transitional framework for power purchase prior to the execution of full PPAs.

Process for Competitive Procurement

The structured process followed by NBET to procure power through transparent and competitive procedures.

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