Power Purchase Agreements (PPA)

Course length: 3 days 

Course description

This course will help the participants to be able to know the details on becoming a PPA negotiation practioner and return with a toolbox of checklists covering the many facets of the PPA process. This course runs through all forms of energy risk from the market, through to credit, liquidity, operational with a particular focus on regulatory risks in the key power markets of Africa and a comparison to Europe and UK. At the end of this course, participants will be able to negotiate or review a PPA.

Who should Attend

Personnel from:

·        Electric Regulation and ministries

·        Utility companies

·        Banks

·        Energy supply companies (Oil, Gas, Coal, renewable)

·        Law Firms

·        Consultancy Firms

·        ERP Contracting companies

 What you Will Learn

·        Overview of how power markets work

·        Understand how to anticipate and mitigate risk through the PPA process

·        Negotiating a PPA

·        Key provisions of a PPA and its impact on project financing

·        What banks and investors want

·        Understand power purchase agreement regulation

·        Understand credit risk in the PPA process

 Course Outline

Day 1: Selling and Buying Power Purchase Agreements

·        Speed Networking

·        Generation Assets

·        Tool1: Cost Data Bank & Levelised Cost of Electricity

·        Selling a PPA: Power Generation Assets Overview

·        Buying a PPA

·        Main Types of Power Station Fuel

 Day 2: Market & Regulatory Risk

 •         How market works

•         Electricity Price Risks and How They Mutate

•         Case Study: Origin Energy

•         Workshop: PPA Negotiation

•         Power Purchase Agreement Regulation

•         Workshop Captains of Collateral: How to monitor credit margining capital for your PPA.

•         Dynamics of Power Markets Across the World

•         The Role of Power Purchase Agreements in Investment

•         Case Study: Bank Lending to the European and UK Power Markets in 2002.

 Day 3: Trading Power Purchase Agreements

 ·        Introduction to the Trading Floor

·        A second return to the Biggest Challenges of delegates attending from Day 1

·        Identifying Operational Risks

·        Morning Workshop – Capabilities

·        Internal Risk Systems –Which One Is Right for You?

·        Credit Risk is an Endemic Feature of the Global Power Market

·        William’s Case Study “Out Of Business in 10 Days”

·        Interactive Discussion of key points from each section

·        A final return to the Biggest Challenges of delegates attending from Day 1