When in it comes to financial interests and issues, the legal aspect of business is of great concern. So one day the following question arises for businessman who are interested in collaborating with us: What kind of papers should be provided by the owner of solar power station in order to start working with Solar DAO?
Taking into account specific features of PVS projects and its types you may get different lists of papers. For example, let’s have a look at projects in RTB (ready to build) stage. In other words, these are plants that are ready for construction. In this case your package of papers should look like this:
- Power Purchase Agreement (PPA)
- Land rights (lease or ownership)
- Obtained construction permits
- Grid connection contract
- Due diligence (good but not strictly needed)
First of all, you should provide PPA. In essence this is a legal contract concluded between an electricity generator, on the one hand, and a purchaser of energy or capacity, on the other hand. It wouldn’t be an exaggeration to say that this kind of agreement plays a key role in the financing of electricity generating assets.
Then comes land rights. This document contains all necessary information of land rights as well as the process of acquiring those. This paper helps developers to make sense of all the details.
Obtained construction permits are also rather significant. One can hardly imagine any construction improvement, repair, alteration, construction, or demolition project without them, and it’s not an exception to the rule either. This is intended to check the compliance of an object with national, regional, and local building codes.
Special mention should be made of the grid connection contract. This document generally sets out the contractual rights and obligations of our company and the grid user in relation to among other matters: rights of use, ownership, technical requirements, and operation of connexion facilities.
Last but not least is due diligence. It implies a specific procedure of analysis prior to concluding a business agreement. It’s considered to be an added benefit.
Now you have an idea of package of documents for projects in RTB stage. As for solar plants in operation, the package of documents is similar.
As soon as you manage to prepare these papers, you can start working with Solar DAO and be sure about legal and tax compliance.
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