Corporate PPAs are increasingly used by large electricity users to secure long-term price certainty while underwriting the development of new renewable generation assets. However, in New Zealand PPAs are relatively new and most transactions have relied on bespoke documentation, adding costs and slowing down PPA negotiations.

The new template provides a balanced, neutral starting point for negotiations between developers and corporate energy users, with the aim of making PPA procurement faster, more consistent and more bankable for project financiers.

The template PPA has been developed over the past year with input from an expert working group of 18 organisations spanning independent generators, all four gen-tailers, large corporate energy users, financiers and public sector participants, alongside a public consultation process.

BusinessNZ Energy Council policy advisor Ben Young said standardisation removes a practical barrier to investment.

“Reducing legal friction and negotiation time gives both buyers and project developers greater confidence to commit capital. That helps bring forward new renewable generation.”

The legal drafting was led by DLA Piper’s New Zealand energy team, drawing on experience from established PPA markets in the UK, Europe and Australia and adapting those precedents for local regulatory and wholesale market settings.

DLA Piper partner Rob Macredie said the focus was on risk allocation and repeatability.

“A well-structured template means parties do not need to rebuild contracts from first principles and can leverage experience from earlier contracts, as well as key learnings from other markets where PPAs are more prevalent. That shortens deal timelines, improves bankability and makes transactions easier to finance.”

The initiative was established by Zeale and founder Paul Coster said improving accessibility was critical for smaller electricity buyers.

“New Zealand has a relatively small pool of large buyers. Making PPAs simpler to understand and execute allows more businesses to participate in the clean energy transition.”

The working group has also identified firming and sleeving arrangements as a remaining constraint and is considering a second phase to support more standardised approaches.

The template and accompanying guide are now available free of charge on Zeale’s website.