COD (Commercial Operation Date) is the day a project starts being paid under the PPA tariff — each delayed day is a day of lost revenue while interest keeps running. Many projects finish construction but stall for months at acceptance over a missing paper. A pre-COD legal checklist keeps owners surprise-free.
What COD is and why it matters
COD is the date a plant is recognised as ready for commercial generation under the PPA — from this date, output is paid at the contracted price. Pre-COD test power (if any) is usually paid under separate arrangements or not at all. Every PPA term on price, committed output and delay penalties anchors to COD.
Missing COD therefore costs revenue and can trigger PPA penalties, hitting the financing case promised to lenders. Managing COD is managing the project’s cash flow.
Pre-COD legal checklist: 6 groups
One, licences: valid power operation licence, fire acceptance document, operation-phase environmental licence. Two, connection and PPA: completed connection agreement, effective signed PPA, calibrated metering. Three, technical acceptance: works completion acceptance records, successful test results (no-load, load, reliability runs). Four, land: land financial obligations settled, no site disputes affecting operation. Five, personnel: certified operating crew, approved safe-operation plan. Six, insurance and finance: property and liability insurance effective from operation date.
Practical tip: build the COD dossier 6 months before the target date, assign owners per document, and align with EVN/EPTC on COD recognition procedures from testing onwards — don’t ask about procedures after testing finishes.
When COD is missed
If COD slips, notify the power buyer immediately per the contract, stating reasons and remedies. Force-majeure delays (natural disasters, policy changes) need full evidence for liability exemption. For owner-caused delays, prepare extension negotiations and price penalties into cash flow — hiding only makes things worse.
This article has been quality-reviewed by the FLAW AI Legal Council.
Frequently Asked Questions
What is COD in a power project?
COD (Commercial Operation Date) is the date a plant is recognised as ready for commercial generation under the PPA — from then, output is paid at the contracted price. All PPA terms on price, committed output and delay penalties anchor to COD; missing it costs revenue and can trigger penalties.
What legal papers are needed before COD?
Six groups: power operation licence, fire acceptance, operation-phase environmental licence; completed connection agreement, effective PPA, calibrated metering; technical acceptance and passed tests; settled land obligations; certified operating crew; insurance effective from operation date.
How to handle a missed COD?
Notify the power buyer immediately per the contract with reasons and remedies. Force-majeure delays need full evidence for exemption; owner-caused delays call for extension negotiations with penalties priced into cash flow. Hiding only makes things worse.