CONCESSION AGREEMENT TEMPLATE

The Concession Agreement Template establishes a legal framework for the construction, operation, and maintenance of mini-grid facilities. It defines the rights and obligations of the Conceding Authority and the Concession Holder, covering asset management, service quality, insurance, and termination procedures, including detailed compensation mechanisms for various termination scenarios.

• The template is designed to be flexible and not a "one-size-fits-all" solution, as it acknowledges that objectives, regulatory frameworks, and market structures vary across different contracting agencies and financing organizations.
• Under the agreement, the Concession Holder is granted the right to design, construct, operate, and maintain assets, as well as produce, distribute, and sell electricity and related services within a defined Concession Area.
• The Concession Holder is obligated to maintain comprehensive insurance, including general liability, property damage, and "all-risk" hazards, provided by a recognized insurance provider.
• The agreement specifies that all materials or equipment, including the mini-grid facility, remain the property of the Conceding Authority, regardless of whether they were existing or built during the concession.
• The template includes a detailed termination compensation framework (Annex 8) that differentiates payments based on the cause of termination, such as Ordinary Termination, breach of obligations by either party, Force Majeure, or the arrival of the main grid.
• In the event of main grid interconnection, the Concession Holder has two options: convert the facility into an Interconnected Mini-Grid or transfer all rights, obligations, and assets to the Conceding Authority, both resulting in the termination of the original contract.

APA

Alliance for Renewable Electrification (n.d.). CONCESSION AGREEMENT TEMPLATE. https://www.renewelec.org/wp-content/uploads/2024/06/Concession-Agreement-Template.pdf

Chicago

Alliance for Renewable Electrification. CONCESSION AGREEMENT TEMPLATE. n.d. https://www.renewelec.org/wp-content/uploads/2024/06/Concession-Agreement-Template.pdf.

Wikipedia

{{cite report |author=Alliance for Renewable Electrification |title=CONCESSION AGREEMENT TEMPLATE |url=https://www.renewelec.org/wp-content/uploads/2024/06/Concession-Agreement-Template.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{allianceforrenewableelectrificationndconcession, author = {{Alliance for Renewable Electrification}}, title = {{CONCESSION AGREEMENT TEMPLATE}}, institution = {Alliance for Renewable Electrification}, url = {https://www.renewelec.org/wp-content/uploads/2024/06/Concession-Agreement-Template.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }