Power Purchase Agreement (PPA) for Renewable Energy Power Plants

Kuala Lumpur

21st Nov, 2018 - 23rd Nov, 2018

1 Participant

SGD 2,995

2 Participant or more

SGD 2,595

Early Bird Fee

Not Available

Power Purchase Agreement (PPA) for Renewable Energy Power Plants

Learn how to assess and negotiate power purchase agreements for buyers and sellers within different technology settings and regulatory frameworks across the globe.

 

Overview

Due to their relatively high capital costs, investors in renewable energy power plants 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. More than 95% of new built power plants are in fact financed on the back of a power purchase agreement. Buyers may want to minimize their exposure to volatility and price rises in the electricity market or specifically energy from certified renewable energy power plants. This has given rise to the so-called “corporate PPA”. There will be a massive focus on using a PPA to finance a new power plant and how to make a PPA “bankable” , managing risks, especially market risk and credit risk thru a power purchase agreement and negotiating and re-negotiating a PPA from buyer’s and seller’s viewpoints. This workshop provides insights into analysis, application and negotiation of power purchase agreements and the contractual context. The trainer will provide a wider view of the topic, but also to provide delegates with a toolbox of how to approach negotiations or risk management.

Designed For

This course is primarily designed for PPA disciplines mainly from renewable plant (Solar, Wind, Hydro, Geothermal, Biogas and Biomass).
  • Project managers
  • Risk and investment analysts
  • Project finance analysts
  • Project engineers
  • Decision makers in energy departments and regulators
  • Power plant developers / owners
  • Utilities and grid operators
  • Accountants and lawyers
  • Private companies that want to buy “green” energy at fixed or predictable prices (thru financial PPAs)
  • Lenders and investor / financial analysis
  • Regulators (Involved in accepting a tariff that is agreed in a PPA and involved in developing a standard PPA for the market.)
  • Sellers (generators), buyers (corporate buyers as well as utilities or licensed suppliers) and also financiers.
  • Buyers of PPAs who want to understand more on carbon and green credits and carbon tax to make sure their supply comes from green sources.

You will Learn

  • 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?
  • Comprehend the differences between “thermal” and “renewable” PPAs.
  • Conduct a PPA negotiation and understand non-negotiable and negotiable elements.
  • Put power purchase agreements in context of the wider contractual framework and applications in various markets across.

Outline

  • Introduction: Basic objectives and components of a PPA
  • Power industry, markets, participants and types of PPAs
  • Price and Volume
  • Risk assessment
  • Using a PPA to finance a renewable energy power plant with debt and equity
  • Environmental Attributes
  • Negotiating a PPA
  • Other PPA clauses including dispute resolution, insurance requirements and technical issues.
  • Related agreements

Instructor

  • Over 20 years’ international, commercial experience in capital markets, power and oil & gas. Passionate about renewable energy technologies and their application in emerging markets.
  • Engineer and entrepreneur in the renewable energy sector, bridging technology and finance.
  • Featured on 21st Century Business TV shown on CNBC Business and Fox Business.
  • Managed global projects in credit trading and market risk management at HSBC in London, Hong Kong and New York .
  • Both consultant and developer in utility-scale solar and wind power, solar greenhouses and waste to energy plants with a focus on Africa, including South Africa, Zimbabwe, Ghana, Sierra Leone, Egypt, and Namibia.

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