Structuring successful Power Purchase Agreements (PPAs), managing competitive electricity markets & attracting merchant power investments
About this Event

Overview

Power Purchase Agreements (PPAs) operate in many different contexts. They can be used to support the development of new projects, or for the supply of energy from existing projects. They can be written by independent power producers, governments or utilities. They can operate in regions with sophisticated power exchanges and markets, and they can also operate in developing countries with a single buyer and a centralized monopoly power utility. In the sessions of this course, we cover each of these contexts.

In this course of 15 modules, delivered over 5 sessions, we firstly cover the fundamentals of power purchasing and important concepts that you need to understand to read, write and negotiate PPAs. After tackling the fundamentals, we examine specific components of the agreements, and focus on those most commonly the subject of negotiation between power producers and power customers. We also look at how the PPA fits into the web of contracts relating to a power development project, and the interaction between the PPA and other contracts.

The course will cover both legal and commercial aspects of the PPA, and will include specific examples of PPAs for solar farms, wind farms, rooftop solar PV projects, Contracts for Difference, virtual PPAs, corporate PPAs and renewable energy credit purchasing.

Course Sessions

1. Introduction to power markets and Power Purchase Agreements

2. PPAs in the context of power project development

3. Prices: tariffs, quantities, escalation, payment

4. When things go wrong – force majeure, damages, termination, disputes

5. Virtual PPAs, environmental credits, financing, management

Benefits of Attending

• Understand the concepts of power purchasing and contracting

• Learn common terminology used in the agreements and their negotiation

• Examine typical payment structures and mechanisms

• Participate in case studies on wind farms and solar farm PPAs

• Appreciate the differences between physical power purchases, and virtual PPAs