Common use of Return of Bank Guarantee Clause in Contracts

Return of Bank Guarantee. (a) AEMO must return each Bank Guarantee to the issuing bank or, if requested by the Reserve Provider, to the Reserve Provider, within 5 Business Days of whichever of the following events occurs first: a) the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract; and b) the date on which AEMO receives in cleared funds the total amount payable under the Bank Guarantee. (b) Within 10 Business Days of the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract, AEMO must provide the Reserve Provider with a notice confirming that all of the Reserve Provider's payments under the reserve contract have been met. Annexure to Schedule 4 - Conditions Subsequent Each condition subsequent applying to the reserve described in Item 3 and condition subsequent fulfilment date is listed in the table below: 1. The Reserve Provider must complete a test of the pre-activation, activation and de-activation of the reserve under instruction from AEMO to AEMO’s reasonable satisfaction. This test requires the Reserve Provider to perform the following actions in sequence (failure to perform these actions in sequence will constitute a failure to complete this test satisfactorily): • pre-activate the reserve within the pre-activation lead time; • provide load reduction at a level in accordance with activation instructions issued by AEMO; and • de-activate under instructions from AEMO within the de-activation lead time. 2. The procedures relevant to the provision of reserve that have been accepted by relevant consumers must be provided to AEMO (if some procedures are generic, a typical procedure will suffice). The procedures must include information protocols and indicate the steps to be carried out for: • pre-activation, activation and de-activation of that part of the reserve; and • the notifications and responses required for each notification of the reserve’s availability, for each part of the reserve that relates to each relevant consumer. 3. The Reserve Provider must demonstrate to AEMO’s reasonable satisfaction that the required notifications can be provided to the operator of each part of the reserve in sufficient time to allow the reserve to be activated in accordance with the contracted levels of performance. Pre-activation and activation are not required as part of this demonstration. 4. Where the provision of reserve relies on standby generation being available to supply the load disconnected from the network, the Reserve Provider must provide AEMO with test certificates or other evidence of satisfactory starts of each standby generating unit, indicating that the prime mover and energisation of the alternator of each standby generating unit were started recently without fail and the standby generating unit must generate electricity for at least 1 hour. The evidence to be provided to AEMO must indicate that each standby generating unit was tested within 30 days of the date of provision of the evidence to AEMO.

Return of Bank Guarantee. (a) AEMO must return each Bank Guarantee to the issuing bank or, if requested by the Reserve Provider, to the Reserve Provider, within 5 Business Days of whichever of the following events occurs first: a) the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract; and b) the date on which AEMO receives in cleared funds the total amount payable under the Bank Guarantee. (b) Within 10 Business Days of the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract, AEMO must provide the Reserve Provider with a notice confirming that all of the Reserve Provider's payments under the reserve contract have been met. Annexure to Schedule 4 - Conditions Subsequent Each condition subsequent applying to the reserve described in Item 3 2 and condition subsequent fulfilment date is listed in the table below: 1. : 1 The Reserve Provider must complete a test of the pre-activationenablement, activation dispatch and de-activation disablement of the reserve equipment under instruction from AEMO to AEMO’s reasonable satisfaction. This test requires the Reserve Provider scheduled generating unit to perform the following actions in sequence (failure to perform these actions in sequence will constitute a failure to complete this test satisfactorily): • pre-activate enable the reserve equipment within the pre-activation enablement lead time; • provide load reduction generate at a level above the greater of the minimum operating level and the market capacity, and in accordance with activation dispatch instructions issued by AEMO; and • de-activate disable under instructions from AEMO within the de-activation disablement lead time. 2. During the test: • All automatic control systems, for example, the excitation control system and governor system, must be operated in their automatic regulating mode; • The procedures relevant to reserve equipment must be operated in a constant and stable manner; and • If AGC is installed, the provision scheduled generating unit must be operated under AGC control. Trend display printouts of the performance of the reserve that have been accepted by relevant consumers equipment must be provided to AEMO (if some procedures are generic, a typical procedure will suffice). The procedures must include information protocols and indicate the steps to be carried out for: • pre-activation, activation and de-activation as evidence of that part of the reserve; and • the notifications and responses required for each notification of the reserve’s availability, for each part of the reserve that relates to each relevant consumer. 3. The Reserve Provider must demonstrate to AEMO’s reasonable satisfaction that the required notifications can be provided to the operator of each part of the reserve in sufficient time to allow the reserve to be activated in accordance with the contracted levels of performance. Pre-activation and activation are not required as part completion of this demonstrationtest. 4. Where the provision of reserve relies on standby generation being available to supply the load disconnected from the network, the Reserve Provider must provide AEMO with test certificates or other evidence of satisfactory starts of each standby generating unit, indicating that the prime mover and energisation of the alternator of each standby generating unit were started recently without fail and the standby generating unit must generate electricity for at least 1 hour. The evidence to be provided to AEMO must indicate that each standby generating unit was tested within 30 days of the date of provision of the evidence to AEMO.

Return of Bank Guarantee. (a) AEMO must return each Bank Guarantee to the issuing bank or, if requested by the Reserve Provider, to the Reserve Provider, within 5 Business Days of whichever of the following events occurs first: a) the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract; and b) the date on which AEMO receives in cleared funds the total amount payable under the Bank Guarantee. (b) Within 10 Business Days of the date on which the Reserve Provider has discharged all payment obligations to AEMO under the reserve contract, AEMO must provide the Reserve Provider with a notice confirming that all of the Reserve Provider's payments under the reserve contract have been met. Annexure to Schedule 4 2 - Conditions Subsequent Each condition subsequent applying to the reserve described in Item 3 and condition subsequent fulfilment date is listed in the table below: 1. The Reserve Provider must complete a test of the pre-activationenablement, activation dispatch and de-activation disablement of the reserve under instruction from AEMO to AEMO’s reasonable satisfaction. This test requires the Reserve Provider to perform the following actions in sequence (failure to perform these actions in sequence will constitute a failure to complete this test satisfactorily): • pre-activate enable the reserve within the pre-activation enablement lead time; • provide load reduction at a level in accordance with activation dispatch instructions issued by AEMO; and • de-activate disable under instructions from AEMO within the de-activation disablement lead time. 2. The procedures relevant to the provision of reserve that have been accepted by relevant consumers must be provided to AEMO (if some procedures are generic, a typical procedure will suffice). The procedures must include information protocols and indicate the steps to be carried out for: • pre-activationenablement, activation dispatch and de-activation of that part of the reservedisablement; and • the notifications and responses required by this Agreement for each notification of the reserve’s availability, for each part of the reserve that relates to each relevant consumer. 3. The Reserve Provider must demonstrate to AEMO’s reasonable satisfaction that the required notifications can be provided to the operator of each part of the reserve in sufficient time to allow the reserve to be activated dispatched in accordance with the contracted levels of performance. Pre-activation and activation are Dispatch is not required as part of this demonstration. 4. Where the provision of reserve relies on standby generation being available to supply the load disconnected from the network, the Reserve Provider must provide AEMO with test certificates or other evidence of satisfactory starts of each standby generating unit, indicating that the prime mover and energisation of the alternator of each standby generating unit were started recently without fail and the standby generating unit must generate electricity for at least 1 hour. The evidence to be provided to AEMO must indicate that each standby generating unit was tested within 30 days of the date of provision of the evidence to AEMO.