Power Purchase Agreement (PPA) from Commercial Perspective
Overview
Structuring successful Power Purchase Agreements (PPAs), managing competitive electricity markets & attracting merchant power investments
There are many moving pieces affecting the future of electric power development in emerging market. Unlike the past Independent Power Project models, which featured standardised take-or-pay contracts – today’s market demands more innovative incentives to ensure better availability, better performance, as well as more attractive and sustainable mixtures of fuel sources. Economies throughout developing countries urgently need to master the key tools, models, and lessons learned for transforming and strengthening today’s electricity sector. These include the latest models in negotiating Power Purchase Agreements (PPAs), in designing and managing new competitive power markets, as well as attracting the right mix of renewable energy sources.
This 4-day comprehensive workshop gives you clear explanations of the new models of PPA risk allocation, of designing and managing competitive power markets, attracting private investments in renewable energy, through a series of real case examples of contracts and markets. Case Studies will include real examples from Africa, Middle East, Asia, Europe and North America. Furthermore, cases stimulate independent thinking and discussion among participants.
Benefits of Attending
- LEARN about all the essentials of different PPAs
- NEGOTIATE fair and sustainable PPAs
- STRUCTURE successful PPAs based upon your own company’s risk profile and risk allocation needs
- EXPOSE to the frontiers of international experience in IPP development
- LEARN theory and practice of pricing and tariff design
- ANALYSE the relationship between Public, Private, and Government sector
- PERFORM a policy and risk analysis of PPA contracts
- EXPLORE a PPA relationship with EPC, O&M, Fuel Supply, and Interconnect Agreement
- GAIN the tools and models in directing your country’s electricity transformation and market design plans
- IMPROVE your awareness of the common pitfalls and mistakes to avoid in today’s private power investments
- LEAD successful power project finance transactions
- IDENTIFY how financial derivatives can be used as an effective hedge of financial and electricity market based risks
Course Agenda
DAY 1
- Introduction and New Energy Outlook
- Case Study: Lake Turkana Wind Power Project, Kenya
- Global Electricity Market Trends Driving PPA Investments
- Case Study: 10 Future Energy Sources
- Electricity Wholesale Markets Development
- Case Study: The Nigerian Power Market Reform
- Electricity Pricing Dynamics
- Case Study: Enron and the California Power Market
DAY 2
- PPA and IPP structure
- Case Study: Dabhol Power Plant, India
- Power Purchase Agreement: Key Features
- Case Study: Summary of PPA Gas Fired Plant
- Case Study: Full PPA Renewable Power Plant
- Power Sales Agreements: Basic Types
DAY 3
- Pricing in PPA
- Tariff Design in PPA
- Power Plant Economics
- Overview of Project Finance in the Power Sector
- Case Study: Project Finance Structures of different IPP Projects
DAY 4
- Effective Contract Management
- Example: International Examples of Commercial Deals Using PPAs, Both Short and Long Term
- Essentials of PPA Negotiation
- Risk Assessment
- Exercise: Risk Assessment IPP project
- Final Exercise/Role Play: IPP and PPA Negotiation
Training Methodology
Throughout the course the course director combines theoretical aspects with real life case studies, actual PPA contract samples, pricing and the specific risks and their mitigation methods. The four-day course at all times remains interactive with full participation from all the participants.
Pre-Course Questionnaire
We would like to customise the workshop based on your specific needs. Pre-Course Questionnaire will be sent prior to the workshop for analyse in advance and to be addressed during the course.
Course Certificate
Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.
Who Will Attend
Energy professionals including but not limited to:
- Contract / Agreement Specialists
- Negotiators
- Legal / Regulation / Policy Analysts
- Business Development Managers
- Commercial Managers
- Finance Controllers / Treasurers
- Corporate Planners
- Business & Accounting Analysts
- Sales & Trading Managers
- Structured / Trade Finance Managers
- Project Managers
- Economists
- Investors
- Chairman / CEO / Directors
From sectors:
- Electric Regulators & Ministries
- Power & Utility Companies
- IPP Developers & Renewables
- Banks / Investors
- Energy Supply Companies (Oil, Gas, Coal and Renewables)
- Law Firms & Consultancy
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