All templatesPOWER PURCHASE AGREEMENT
THIS AGREEMENT is made on 1 October 2026
BETWEEN
(1) TURKANA SUN POWER LIMITED (the Seller); and
(2) KENYA POWER AND LIGHTING COMPANY PLC (the Buyer).
RECITALS
(A) The Seller is developing the generation facility described in this Agreement.
(B) The Seller has agreed to sell and the Buyer to buy the electrical energy it generates, on the terms of this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In this Agreement, unless the context otherwise requires:
(a) Business Day means a day other than a Saturday, Sunday or public holiday in Kenya;
(b) Commercial Operation Date means the date on which the Facility is commissioned and first delivers energy to the Buyer on a commercial basis, as the parties record in writing;
(c) Contracted Capacity means 40 MW;
(d) Delivery Point means the point at which the Facility is connected to the Buyer's network, being the 132 kV Lodwar substation;
(e) Facility means the 40 MW solar photovoltaic plant at Lodwar, Turkana County, connected to the 132 kV Lodwar substation; and
(f) Tariff means the tariff under the Tariff and Payment clause.
1.2 A reference in this Agreement to a clause is a reference to a clause of this Agreement, and the singular includes the plural and vice versa.
2. Sale and Purchase of Energy
2.1 The Seller shall sell and deliver to the Buyer at the Delivery Point, and the Buyer shall take and pay for, all the electrical energy generated by the Facility up to the Contracted Capacity.
2.2 The obligations in clause 2.1 take effect from the Commercial Operation Date and continue for the term of this Agreement.
2.3 The sale and purchase of energy under this Agreement is on a take or pay basis.
2.4 Where the Buyer does not take energy that the Facility was able to deliver, the Buyer shall pay for that energy at the Tariff as if it had been delivered.
2.5 The Buyer shall not be liable to pay under clause 2.4 to the extent that it was prevented from taking the energy by force majeure or by the Seller's default.
2.6 The Seller shall not deliver, and the Buyer shall not be obliged to take, energy in excess of the Contracted Capacity except as the parties may agree in writing.
2.7 Energy delivered by the Seller at the Delivery Point shall be at the risk of the Buyer, and title to that energy shall pass to the Buyer, at the Delivery Point.
3. The Facility and Commissioning
3.1 The Seller shall design, build, own, operate and maintain the Facility, being the 40 MW solar photovoltaic plant at Lodwar, Turkana County, connected to the 132 kV Lodwar substation, with the Contracted Capacity of 40 MW, at its own cost and to the standard of a prudent operator.
3.2 The Seller shall achieve the Commercial Operation Date as soon as it reasonably can and shall keep the Buyer informed of progress.
4. Licences and Grid Connection
4.1 The Seller shall obtain and keep in force every licence, permit and approval required by law for the generation and sale of electricity from the Facility, including every licence, permit and approval required from the Energy and Petroleum Regulatory Authority.
4.2 The Seller shall design, build, own, operate and maintain the connection of the Facility up to the Delivery Point at its own cost, to the standard of a prudent operator.
4.3 The Buyer shall provide and maintain its network from the Delivery Point.
4.4 Each party shall comply with the grid code and with the rules that apply to the connection of the Facility to the Buyer's network.
5. Tariff and Payment
5.1 The Buyer shall pay the Seller for energy delivered at the Delivery Point at the Tariff of USD 0.0575 per kWh, 30% indexed annually to US CPI from the third anniversary of commercial operation.
5.2 The Seller shall invoice the Buyer monthly for energy delivered in the previous month.
5.3 The Buyer shall pay each invoice within 30 days of receiving it.
5.4 Where the Buyer disputes an amount invoiced, the undisputed part of that invoice shall be paid under clause 5.3, and the disputed amount shall be paid once the dispute is resolved.
6. Metering
6.1 Energy delivered is measured at the Delivery Point by a meter the parties agree.
6.2 Each party may have the meter tested, and may attend any reading or test of it.
6.3 If the meter is found inaccurate, the invoices affected are corrected.
7. Curtailment
7.1 The Buyer may require the Seller to reduce or stop deliveries of energy from the Facility where that is necessary for the safety or stability of its network, in an emergency, or for maintenance of which it has given the Seller reasonable notice.
7.2 The Buyer shall keep any curtailment as short as it reasonably can, and shall notify the Seller of the curtailment and of its expected duration as soon as practicable.
Energy & Natural Resources
Power Purchase Agreement (PPA) template (Kenya)
What it is for
A sample Power Purchase Agreement (PPA) for use in Kenya, drafted under the Energy Act (Cap. 314) and the Arbitration Act (Cap. 49).
The Kenyan law it follows
- Energy Act (Cap. 314) — licensing by the Energy and Petroleum Regulatory Authority
- Arbitration Act (Cap. 49)
Who prepares it
This is normally drawn by an advocate, and where it is a court paper, filed by one. The sample shows what the finished document looks like.
Draft this for your matter
Advocates draft this on Lex from their own facts and download it in Word. If you need one prepared for you, find an advocate.
Sample power purchase agreement (ppa)
The first part of the sample is shown here. The names, amounts and facts are made up to show how the document reads.
The rest of this power purchase agreement (ppa) is for Lex members
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This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.