The global power markets are rapidly evolving and transitioning towards ever-increasing quantities of clean energy - bespoke power purchase agreements allow both IPP power producers and buyers to obtain long-term security to sell and buy renewable energy. For both generators and buyers of renewable energy (including corporates, industrialists and grid operators) power purchase agreements need to really address their individual circumstances and risks.

Buyers want to minimize their exposure to volatility and price rises and this has led to a huge rise in the contracting of so-called ‘Corporate PPA’ and Financial/Virtual PPA. It is a mission-critical agreement and as a result, we have developed a highly specific course that provides deep insights into the analysis, application and negotiation of PPAs, their contractual context and insights from the expert trainer’s deep library and knowledge of the latest best practice.

 

 Leave this course with a comprehensive understanding of the components of PPAs

 Put PPAs in the context of the wider contractual framework

 Learn the best financial practice when working with PPAs

 A step-by-step guide of the basic types and key features of corporate PPAs

 Analysis case studies and best practice

 Put everything you learn into practice the very next day

DAY 1

BASIC TYPES AND KEY FEATURES OF PPAS

The overall structure of a PPA
PPA Definitions
PPA Milestones and Delays
Impact of Dispatchable and Non-dispatchable power technologies

AN OVERVIEW OF PROJECT FINANCE

The rationale for project finance
PPA and fit into the overall project set-up
The role of the Special Purpose Vehicle
Stakeholder and risk sharing within project finance
What lenders understand as being a “Bankable project”
Cash Flow Waterfall and Debt Service Cover Ratio
Lender Rights under a PPA

FINANCIAL PPA PROVISIONS

Tariff Structures & Escalators
Levelized cost of electricity
Capacity and Energy Charge
Daily and seasonal weighting factors in a PPA
Fixed-price PPA and escalators

 

DAY 2

TECHNICAL PPA PROVISIONS

Commissioning process, Acceptance and Performance testing
Procurement of Electricity
Measurement and definition of capacity, availability and output
Metering and delivery point
Comparison of start rates, control of output and storage

BASIC TYPES AND KEY FEATURES OF CORPORATE PPAS

Wholesale prices and Interconnection capacity as a mega driver
Existing assets versus new developed assets
Sleeved and Synthetic PPAs
Contract for Difference
Bundled, Certificates only or Electricity only PPA

RISK ALLOCATION AND MITIGATION

Understanding the link to EPC agreements
Development and Construction Phase Risks
Liquidated damages
Operational Phase Risks
All other Risks

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