Understand the corporate PPA in context and deep-dive into the key features and overall structure of the corporate PPA.
This highly specific course will introduce the legal, financial and technical structure and hidden pitfalls of PPAs as a means for Sellers and Buyers to minimise their exposure to the 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.
Over three days you will…
Leave this course with a comprehensive understanding of the components of PPAs
Explore a step-by-step guide of the basic types and key features of corporate PPAs
Put PPAs in the context of the wider contractual framework
Learn the best financial practice when working with PPAs
Put everything you learn into practice the very next day
Analyse case studies and best practice
Course Outline
Session 1: The Corporate PPA in context, basic types and key features of Corporate PPAs & overall structure of a PPA
Session 2: PPA Timing and Milestones, Pre-Commercial Operation Date Period, Post-Commercial Operation Date Period
Session 3: PPA Tariff Structures, specific considerations for corporate PPAs, events beyond Business-As-Usual
Agenda
Session 1:
The corporate PPA in context
Scale of the corporate PPA market compared to general market size
Who is buying who is selling what?
Drivers of corporate PPAs
Wholesale prices and Interconnection capacity as a mega driver
Basic types and key features of corporate PPAs
Existing assets versus newly 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
Session 2:
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
Pre-Commercial Operation Date Period
Order of execution of other project contracts
Back to back requirements with the EPC contractor
Development bonds, Performance Bonds and Letter of credits
Definitions of achieved, declared, contracted and minimum capacities
Delay and Performance Liquidated Damages – calculation and different structures
Post-Commercial Operation Date Period
Delivery Point, Metering and Losses – the devil is in the detail
Invoicing, Billing and Payments procedures or show me the money
Impact on working capital requirements and bankability
Availability, Planned Maintenance Outages and requested changes
Prudent Utility Practice and manufacturer warranties
Allowed Grid Unavailability Periods, Curtailment and Deemed Energy provisions
Session 3:
PPA tariff structures
Understanding Levelized Cost of Electricity, Cost of Capital and their impact on tariffs
Tariff Structures for intermittent power generation technologies
Take-or-Pay versus Take-and-Pay contracts
The rationale for indexation and escalation of local, foreign inflation and currencies
Discount to market indexes
Price collar structures
Seasonal weighting factors in a PPA
Locational Marginal Pricing and grid charges
Specific considerations for corporate PPAs
Forecast wholesale price uncertainty and fixing the strike price
Counterparty risk and long term creditworthiness of the generator and off-taker
Power consumption load profile and changes over time
Additionality and Guarantee of Origin
Scheduling and balancing risks
Wholesale power price linked PPA
Events beyond Business-As-Usual
Dispute Resolution, Cure Periods and Arbitration
Lenders Step-in Rights
Political and Natural Force Majeure Events
Changes of Law and Stabilization clauses
Consequences of Force Majeure and Changes of Law
Seller or Buyer Event of Default
Termination rights of PPA by either side
Termination payment pricing methodology
Course Benefits:
It's Interactive: Q&A with your course leaders and a chance to network with other attendees
Slides and Recordings: Receive all recordings and slides to learn at your own pace
No Travel: All workshops are delivered online, ideal for your new WFH office
Certificate: All attendees will receive a certificate once they've completed the programme
Watch some short clips from the training course below:
What Attendees Are Saying
“It gave me a good idea of the most relevant aspects about the Corporate PPA world, both from buyer and seller perspective as well as the different options when evaluating a project. I found very useful the methodology used to conduct the training (online).”
“The course allowed us to understand what the corporate PPA trends are in different regions and learning about the different PPA structures.”
“We enjoyed the trainer’s Insight into typical ranges for metrics and his comments about the standard format and his analytic approach.”