The global power markets are rapidly evolving and transitioning towards ever-increasing quantities of clean energy - 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 power purchase agreements need to address their individual circumstances and risks.


This highly specific course aims to introduce the legal, financial and technical structure and hidden pitfalls of PPAs as a means for Sellers and Buyers to minimise their exposure to volatility of price and volume. The structure of physical and financial PPAs will be thoroughly dissected and put into context of the overall risk assessment of the project transaction. We will compare both types of PPAs, their different tariff structure based on either costs or market price and the implication for the seller and buyer.


Delegates will be engaged to discuss recent case studies from around the world, embark on group exercises of risk allocation and will revising real world PPAs clauses in order to dig out the gist of this mission critical project agreement. 

 

 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

COURSE
Agenda

This course is not all about listening and learning but is a highly interactive and immersive experience. As an independent training provider, Green Power Academy provides an unbiased and hype-free look at the key fundamentals of PPAs.

Mar

31

Apr

01

Apr

02

DAY 1 OUTLINE
09:00 - 17:00

The Context of a physical PPA for an IPP

  • Differences in Power Market Structures
  • The road of the IPP into the power market
  • Different options of the kWh to the market
  • Difference of physical and financial PPA
  • Why a PPA at all and the fit into the overall project set-up
  • Main risks of an IPP during developing, construction and operation
  • Role of project contracts to mitigate risks
  • Understanding the link to Project Finance and lenders requirements

Basic Types and Key Features of Corporate PPAs

  • Existing assets versus new developed assets
  • Sleeved and Synthetic PPAs
  • Contract for Difference
  • Bundled, Certificates only or Electricity only PPA
  • Behind the meter or ‘on-site’ PPAs
  • Fully contracted asset versus partly merchant asset
  • Pooling different load profiles as a buyer group
  • Multiple Corporate PPAs and first right of power

Overall structure of a PPA

  • Definition of commercial terms
  • Risk to bankability
  • Obligations and Undertakings of each party
  • Conditions Precedents to be on the safe side
  • PPA Definitions and Annexes

PPA Timing and Milestones

  • From Signing to Expiry Date
  • Scheduled Dates, Actual Dates and Events
  • Changing Rights and Obligations at each dates
  • Release of obligations in certain events
  • Pre-COD and Post-COD periods
  • Periods to exercise rights, notify and cure
  • Termination rights not meeting milestones

YOUR TRAINER
CHRISTIAN ERICH GRUTTE

 

 

Christian is an independent financial advisor with some 18 years’ experience in the power & renewable sector. He started out his career in a leading North European Strategy Consultancy, where he made substantial contributions to build the energy practice within the firm. He developed and implemented innovative distributions concepts for utility clients to face the competitive challenges of the newly liberalized German electricity market. In 2002, anticipating the tectonic shifts to arrive in the energy sector by renewables, Christian decided to set-up his own advisory boutique to serve exclusively the renewable energy sector.

In the following years, Christian, supported world leading Utilities, IPPs and Private Equity Investors, such as Iberdrola, AES, RWE, OMV, Englefield Capital and Hudson Clean Energy Partners to thoroughly assess international market opportunities and successfully assemble project portfolios across mature and emerging European renewable markets.

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If you have an enquiry about our in-house training you can contact Business & Development Manager, Jonathan Hull.

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