---
title: Landlord and Tenant Obligations to Create Additionality in Renewable Electricity Generation
excerpt: 
date: 2024-03-27T14:17:19Z
modified: 2025-07-23T11:24:41Z
file_type: md
permalink: clauses/landlord-and-tenant-obligations-to-create-additionality-in-renewable-electricity-generation.html
wpid: 2189
status: publish
type: clause
jurisdiction:
  - England &amp; Wales
maintenance-status:
  - Not maintained
practice-area:
  - Real estate and property
sector:
  - Energy and natural resources
  - Real estate
eleventyComputed:
  clause_child_name: Oisín’s Clause
  clause_summary: "A series of stepped options for commercial leases that help corporate landlords and tenants generate additional 'green' electrons for the electricity grid where their leasehold property is located. "
  clause_last_updated_date: 2022-06-20
layout: layouts/clause.njk
---

# Landlord and Tenant Obligations to Create Additionality in Renewable Electricity Generation

## Child’s name

Oisín’s Clause

## Summary

A series of stepped options for commercial leases that help corporate landlords and tenants generate additional 'green' electrons for the electricity grid where their leasehold property is located.

## What this clause does

This clause provides step-down options for the corporate landlord and tenant so that they have multiple pathways to and opportunities for adopting it. Where one party provides evidence to the other that the higher ambition option is impractical and/or cost-prohibitive, the other party is then required to act reasonably in permitting the step-down.

## Clause Content

*\[Drafting note: capitalised terms relate to either a defined term in this clause or a defined term in the main agreement that this clause is designed to be inserted into.\]*

**Landlord’s obligations**

1\. The Landlord shall:

1.1 procure that \[100%\]/\[at least \[●\]%\] of the electricity supplied to the Property during the \[term\] is 100% Renewable Energy using one or all of the procurement options in clauses 2.1 to 2.4; and

1.2 only enter into electricity supply agreements for the Property with a Green Supplier.

2\. The Landlord shall procure the electricity supplied to the Property in clause 1.1 through the following procurement options:

2.1 The Landlord shall install equipment capable of generating and/or storing 100% Renewable Energy on the Property.

2.2 If the Landlord explains and provides evidence satisfactory to the Tenant (acting reasonably) that procuring 100% Renewable Energy for the Property under clause 2.1 is impractical and/or cost-prohibitive\*, the Landlord shall:

2.2.1 procure the installation of equipment capable of generating and/or storing 100% Renewable Energy outside of the Property. This includes the Landlord acquiring a whole or partial interest in a Renewable Energy Project. If the acquisition of such interest by the Landlord is partial, the output (in MWh) from such installation prorated to the relevant percentage ownership interest shall be not less than the Annual Consumption; and

2.2.2 enter into a PPA with the Renewable Energy Project Developer to purchase 100% Renewable Energy (in MWh) not less than the Annual Consumption (and associated Environmental Attributes) from the Renewable Energy Project in clause 2.2.1.

\* \[*Drafting note: where the Landlord and Tenant do not agree on the definition or scope of ‘impractical and/or cost-prohibitive’, they should refer to the dispute resolution mechanism or clause set out in the main lease agreement. If no dispute resolution clause or mechanism has been agreed or it is not adequate for resolving disputes arising under Oisín’s Clause, consider adding an appropriate dispute resolution clause to the primary lease to deal with this point. This drafting note applies to all uses of ‘impractical and/or cost prohibitive’ in Oisín’s Clause.*\]

2.3 If the Landlord explains and provides evidence satisfactory to the Tenant (acting reasonably) that clauses 2.1 and 2.2 are impractical and/or cost-prohibitive:

2.3.1 the Landlord shall enter into a PPA with a Renewable Energy Project Developer to purchase 100% Renewable Energy (together with a corresponding volume of applicable Environmental Attributes) that is not less than the Annual Consumption;

2.3.2 the Landlord may structure such PPA in the manner it sees fit, including on a virtual PPA or on a sleeved (i.e. through a Green Retailer) basis, if appropriate; and

2.3.3 such PPA shall generate additional renewable energy capacity that would not have been generated but for the PPA.

2.4 If the Landlord explains and provides evidence satisfactory to the Tenant (acting reasonably) that clauses 2.1 to 2.3 are impractical and/or cost-prohibitive, the Landlord shall pay a Green Energy Tariff to a Green Retailer.

**Tenant’s obligations**

3\. The Tenant shall:

3.1 procure that \[\[100%\]/\[at least \[●\]%\] of the electricity supplied to the Premises during the \[term\] is 100% Renewable Energy using one or all of the procurement options in clauses 4.1 to 4.4; and

3.2 only enter into electricity supply agreements for the Premises with a Green Supplier.

4\. The Tenant shall procure the electricity supplied to the Premises in clause 3.1 through the following procurement options:

4.1 The Tenant shall install equipment capable of generating and/or storing 100% Renewable Energy on the Premises.

4.2 If the Tenant explains and provides evidence satisfactory to the Landlord (acting reasonably) that procuring 100% Renewable Energy for the Premises under clause 4.1 is impractical and/or cost-prohibitive, the Tenant shall:

4.2.1 procure the installation of equipment capable of generating and/or storing 100% Renewable Energy outside of the Premises. This includes the Tenant acquiring a whole or partial interest in a Renewable Energy Project. If the acquisition of such interest by Tenant is partial, the output (in MWh) from such installation prorated to the relevant percentage ownership interest shall be not less than the Annual Consumption; and

4.2.2 enter into a PPA with the Renewable Energy Project Developer to purchase 100% Renewable Energy (in MWh) not less than the Annual Consumption (and associated Environmental Attributes) from the Renewable Energy Project in clause 4.2.1.

4.3 If the Tenant explains and provides evidence satisfactory to the Landlord (acting reasonably) that clauses 4.1 and 4.2 are impractical and/or cost-prohibitive:

4.3.1 the Tenant shall enter into a PPA with a Renewable Energy Project Developer to purchase 100% Renewable Energy (together with a corresponding volume of applicable Environmental Attributes) that is not less than the Annual Consumption;

4.3.2 the Tenant may structure such PPA in the manner it sees fit, including on a virtual PPA or on a sleeved (i.e. through a Green Retailer) basis, if appropriate; and

4.3.3 such PPA shall generate additional renewable energy capacity that would not have been generated but for the PPA.

4.4 If the Tenant explains and provides evidence satisfactory to the Landlord (acting reasonably) that clauses 4.1 to 4.3 are impractical and/or cost-prohibitive, the Tenant shall pay a Green Energy Tariff to a Green Retailer.
