Bilateral agreement settings
The bilateral agreement form has two sections. The General section holds the Contract terms, Pricing terms, and Payment terms tabs. The Connections section holds the Assets tab. This page describes each tab in that order.
Contract terms
The Contract terms tab holds the basic terms of the bilateral agreement, which set the revenue, profit, and risk allocation between the two counterparties.
Contract status
Use the contract status to track your bilateral agreement pipeline. The choices are Draft, Signed, and Started.
The status does not affect the simulation results of the linked assets. It is mainly for filtering and sorting your list of bilateral agreements.
Tensor Cloud does not currently update the contract status automatically from the contract start date.
Bilateral agreement name
Enter a descriptive name that helps you find the agreement later. This field is required, and the name must not already be used by another bilateral agreement in the workspace.
Contract start date
Enter the date on which the bilateral agreement takes effect. This field is required and accepts dates between 2016-04-01 and 2049-12-31. Tensor Cloud counts all electricity flows from 0:01 on that day to 23:59 on the last day of the contract.
Contract term
Enter the length of the contract in whole years. This field is required, the default is 10 years, and the contract must end before 2066. Bilateral agreement terms are usually close to the lifetime of the linked assets.
Tensor Cloud keeps calculating asset cash flows after the bilateral agreement term ends. Those cash flows contain no bilateral agreement settlements and come from market revenues only.
Offtaker
Enter the offtaker's name in this optional field. You can then sort and filter by offtaker in the asset list and in the bilateral agreement list.
Manage your offtakers in the stakeholders tab of the Tensor Cloud settings, or add a new one directly from the Offtaker dropdown with Add new.
Entering an offtaker's name does not give the offtaker access to any information in your account, and it does not notify the offtaker that you have linked them to an asset. The field only helps you organize your portfolio.
Pricing terms
The Pricing terms tab sets the price of the environmental value sold under the agreement.
Non-fossil certificate (NFC) price
The price, in JPY/kWh, at which the environmental value of the linked assets is sold to the offtaker. This field is required and takes a single value between 0 and 10,000 JPY/kWh that applies for the whole contract term.
Payment terms
The Payment terms tab sets how the counterparties invoice and settle payments.
Billing frequency
How often the offtaker is invoiced, in months, between 1 and 24. The default is 1.
Payment term
How long the offtaker has to settle an invoice, between 1 and 730 days, counted either from the End of month or from the Exact day of the invoice. The default is 30 days, End of month.
Consumption tax
The consumption tax rate added to payments under the bilateral agreement, between 0 and 100%. The default is 10%.
Linked assets
The Assets tab lists all assets linked to the bilateral agreement. Use Add to link more assets. To unlink assets, select them in the list and press Remove. Assets that are already linked to another bilateral agreement are not offered.
Press Save after you have made your selection.