3 day Masterclass

Mastering Power Purchase Agreements

Understanding the Economics surrounding a PPA Master Risk, Negotiation and PPA Bankability Place PPAs in various contexts

Availability:

Dubai, 10-12 Sep 2019


Learn from Real-Life PPAs

Master all aspects of PPAs. Understand their purpose, context and influence in different projects in different markets. You will have the opportunity to analyse and assess real-life power purchase agreements as part of hands-on case studies. Assess, analyse, learn.

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address key challenges

Assess the challenges and opportunities within various markets

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expand your knowledge

Understand the underlying economic terms, and how to find them in a PPA

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learn from the best

Learn the latest developments from an industry expert

Get to grips with the importance of ppas

Due to their relatively high capital costs of renewable energy power plants, investors require long-term certainty about the plant’s ability to sell the power it generates. This is usually achieved thru a long-term power purchase agreement. Less than 5% of new built power plants are not financed on the back of a power purchase agreement. 

In just 3 days you will:

  • Analyze the typical structure of the PPA document and the provisions in a power purchase agreement.
  • Understand the underlying economic terms and how to find them in a power purchase agreement. How are tariffs in a PPA expressed and how are those prices determined in both regulated and de-regulated markets?
  • Learn about the risks that a power purchase agreement can address.
  • Discover what it takes to make a power purchase agreement “bankable” – i.e. what provisions must a PPA have in order for lenders to provide debt to the project?
  • Put power purchase agreements in context of the wider contractual framework and applications in various markets across geographies.
  • Enable buyers and sellers to actively participate in PPA negotiations.

Organisations that will benefit:

  • Power companies
  • Investors
  • Insurances
  • Banks
  • Consultants
  • Government and regulators
  • Oil & Gas companies
  • Utilities
  • Suppliers

Who will attend:

  • Officials of governments and regulatory bodies
  • National utilities and grid operators
  • Development finance institutions and commercial banks
  • Lawyers
  • Project developers and equity investors
  • EPC contractors and O&M service providers.

Course Agenda

  • Components
  • Purpose of PPAs, basic structure and definitions
  • Milestones
  • Context
  • Characteristics of power plant technologies and their significance in PPAs
  • Power plant context: evacuation infrastructure and market structure
  • Basic PPA types: direct and financial PPAs
  • Financial Provisions
  • Definition of volume: take-or-pay, taken-and-pay, contracted volume
  • Tariff structure: base tariff, choice of indexation, currency, term
  • Pricing methods: feed-in tariff, auctions, regulated asset based model, auctions
  • Invoicing: billing cycle
  • Delivered, deemed and non-delivered energy
  • Secondary revenue streams from green certificates and availability payments
  • Tax incentives
  • Risk Management with PPAs
  • Risk of volume and variable price
  • Natural force majeure
  • Currency exchange risk – local currency loans
  • Change in law
  • Credit risk and strategies to improve rating of PPA thru guarantees or liquidity facilities
  • Seller default
  • Development and construction risks
  • Operational phase risks
  • Political force majeure
  • Project Finance
  • Overview of non-recourse finance and the role of PPAs
  • Investment and lending decisions based on cash flow waterfall model using net present value and debt service cover ratios.
  • Bankability criteria
  • PPA provisions for financiers’ rights
  • Negotiating a PPA
  • Setting objectives for the negotiations for all participants
  • Negotiable and non-negotiable terms
  • Role of regulator in negotiations
  • The use of “heads of terms”
  • Technical Provisions
  • Plant description: interconnection point vs interconnection works
  • Metering: installation and testing
  • Testing, commissioning and acceptance of the plant
  • Operation: maintenance, standards, reporting
  • Other Provisions
  • Dispute resolutions and arbitration
  • Circumstances of early termination
  • Termination compensation
  • Insurance requirements
  • Related Agreements
  • The “PPA Ecosystem” of contracts:
  • Equipment, Procurement and Construction contract (EPC)
  • Operations & Maintenance contract
  • Project implementation Agreement (PIA) with a government
  • Land Lease Agreement
  • Corporate PPAs
  • The market for corporate PPAs
  • Regulatory requirements for corporate PPAs in grid-connected power plants
  • Sleeved and synthetic PPAs
  • Contract for Difference

For further information please call: +44 (0)207 092 1045

  • “The depth and knowledge of my trainer was extremely impressive. In 3 days I have had, without a doubt, a masterclass on the industry. Truly world class.”

    - Gordon Dowall Potter, Past Delegate

  • “Well worth 3 days of study!”

    - Syed Hamza, Past Delegate

  • “The training was excellent! I give it a 10 and will get my trainer's support for my next challenges.”

    - Head of Partnerships & Customer Loyalty at Avis Budget, Past Delegate

  • “Extremely constructive course with a very good dynamic and passionate trainer.”

    - Managing Director at BNP Paribas, Past Delegate

  • “Impressive and cooperative trainer who wanted to make sure the delegates understood.”

    - Budgeting, Planning & Reporting Manager, Past Delegate

IN-HOUSE

We can come to you too! If you have a team of six or more, why not hold a private course? Our experts come to you and the course is tailored to your requirements.

Call +44 (0)20 7092 1045 (United Kingdom)
or emma-jane.dinan@terrapinn.com (Asia Pacific)
for more details

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