A Generation Long Term Energy Service Agreement (LTESA) is a financial derivative contract, that provides an LTES Operator with a series of options to access a Fixed Price, cash settled swap under the terms of the agreement. The award of a Generation LTESA is conditional upon entry into and compliance with two primary contractual Project Documents:
- Project Development Agreement (PDA) – includes obligations on the LTES Operator to achieve Financial Close, construct and commission the Project, and comply with various social licence commitments.
- LTESA – includes the specific terms of the derivative arrangements and ongoing operational obligations on the LTES Operator.
For Generation LTESAs awarded, the SFV will be the counterparty to the relevant Project Documents.