Responsibility for Forgone Energy Sample Clauses
The "Responsibility for Forgone Energy" clause defines which party is accountable for the value or cost associated with energy that could have been generated or delivered but was not, due to specific circumstances outlined in the agreement. Typically, this clause details scenarios such as curtailment, outages, or force majeure events, and clarifies whether the seller, buyer, or a third party bears the financial impact of lost energy production. Its core practical function is to allocate risk and financial responsibility for lost energy, thereby preventing disputes and ensuring both parties understand their obligations in situations where energy delivery is interrupted or reduced.
Responsibility for Forgone Energy. (a) The amount of Renewable Electricity which the Facility is able to generate and Deliver may be reduced from time to time during the Support Period due to transmission constraints. The Generator shall, each calendar year during the Support Period, bear the risk of any resulting Forgone TC Energy in such calendar year in an amount equal to two hundred (200) hours multiplied by the Contract Capacity (the "Annual Forgone TC Energy Threshold") and shall not be entitled to any payment from the AESO with respect thereto. The AESO shall, however, pay the Generator, in accordance with Section 7.3, for any Forgone TC Energy in any calendar year which is in excess of the Annual Forgone TC Energy Threshold. The Annual Forgone TC Energy Threshold shall, for the calendar year during which Commercial Operation occurs, be equal to the product of: (i) such threshold multiplied by (ii) the number of days from and after the Commercial Operation Date to the end of such calendar year divided by 365 days.
(b) The amount of Renewable Electricity which the Facility is able to generate and Deliver may also be reduced from time to time during the Support Period due to Designated Changes in Law. The AESO shall pay the Generator, in accordance with Section 7.4, for any resulting Forgone CIL Energy.