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