Renewable Energy and Power Purchase Agreements (PPAs)

Successfully negotiating and signing a bankable renewable PPA

Tuesday 8 November 2022, 10:00-16:00 (CET)

The global renewable electricity generation capacity is growing with an unprecedented speed. Half of the growth in the power production across the globe is coming from renewables, led by wind, solar PV, and hydropower.  Within the next 5 years the share of renewable technologies meeting global energy demand will reach 30% of the total world electricity generation.

There are many companies that have a commitment to become 100% green.  Corporate Power Purchase Agreement (CPPA) would be the instrument to source the renewable energy. The corporate PPA market offers an avenue to hedge wholesale price risk and secure long-term revenue visibility and price certainty. The CPPA market already took off in the US and Europe and is spreading across the globe.  So there are valuable lessons to be learned.

A policy shift towards competitive pricing mechanisms drives renewables growth.  Overall, continuous cost reductions are expected to make renewables more competitive with new coal and natural gas plants in an increasing number of countries.

The introduction of additional competitive auctions for long-term PPAs in key countries; and a growing private or corporate PPA market that takes advantage of wind and solar PV cost reductions, will be a very interesting instruments to further deploy renewable power projects.

Even with renewable energy technologies becoming increasingly competitive, appropriate policies and market design are critical. Governments should introduce measures to tackle policy and regulatory uncertainties as well as grid integration and financing challenges.

During this intensive  and highly interactive one day hands-on course we will provide a comprehensive guidance and tips and tricks with regards to successfully negotiating and signing a bankable renewable PPA.

Target Groups:
Professionals in a business, control or support function in the commodity and energy markets.

  • Understand the impact of the fast growing renewable part in the energy mix
  • Learn about the essentials of the different Renewable PPAs
  • Know how to execute a risk assessment for a renewable PPA
  • Learn how to structure a successful and bankable PPA contract
  • Have a clear insights in how to negotiate a PPA that works

Including:

  • Study materials (handout)
  • Lunch

Programme

Corporate PPAs in today’s power markets

  • What is a Corporate PPA
  • Impact energy transition on Power Markets
  • Renewable Corporate Sourcing
  • Support Mechanisms and Subsidies
  • Role Renewable attributes
  • Negative Prices
  • Regulatory Barriers

Common PPA structures

  • Physical or sleeved
  • Virtual
  • Direct Wire
  • Multi-buyer
  • Cross Border

Pricing Structures

  • Fixed Pricing
  • Index Pricing
  • Option Structures

Volume structures and risk allocation

  • Pay-as-produced
  • Pre-defined profile
  • All day peak load
  • Annual Baseload
  • Monthly Baseload

Risk Assessment and Allocation

  • Risks Allocation and Mitigation
  • Risks Construction and Operational Phase
  • Other important risks to assess:
    • Volume risk
    • Profile risk
    • Balancing risk
    • Counterparty Credit risk
    • Price risk
    • Tenor risk
    • Change in law risk
    • Force majeure risk

Key Contract features Renewable Corporate PPA

  • Duration
  • Milestones & penalties
  • Transmission issues
  • Point of Delivery
  • Curtailment
  • Termination events

PPA Risk Mitigation

  • Volume Firming Agreement
  • Proxy Revenue Swap
  • Proxy Generation
  • Energy Exchange
  • Asian Put Options


About the Lecturer

Kasper Walet, former trader, since 1997 consultant and trainer specialised in energy and commodity markets.



Register for Renewable Energy and Power Purchase Agreements (PPAs)



 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com