Structuring Hybrid Renewable Offtake Agreements: Key Provisions, Risks and Limitations, Financing, Best Practices

An offtake agreement is an arrangement between the project company and the party buying the energy and related products that the project will produce and deliver over time. These agreements incorporate critical terms such as payment mechanisms, operating requirements, performance guarantees, events of default, periodic testing requirements, and other significant provisions. Counsel must identify risks associated with these agreements and ensure that such contracts are aligned with the goals of projects, utilities, and investors to secure revenue.

A properly structured offtake agreement for hybrid renewables can secure revenue, shift risk, and provide for other items beneficial to the energy project company and the purchaser. Energy counsel must understand the nuances of these complex contract structures, the associated risks, and available financing approaches.

The effectiveness of any offtake structure and financing hinges on a complete understanding of key terms, attributes, and regulatory implications applicable to an energy project.

Listen as our panel analyzes the available offtake arrangements for hybrid renewables, financing risks, key terms and provisions to minimize risks, and other items essential to using offtakes for hybrid renewable energy projects.