POWER PURCHASE AGREEMENTS

Examine the various structures of Power Purchase Agreements (PPAs) and how they fit together to allocate and mitigate risk.

24 – 26 SEPTEMBER 2018, KUALA LUMPUR, MALAYSIA

About The Course

This course focuses on examining the various structures of Power Purchase Agreements (PPAs) and how they fit together to allocate and mitigate risk.

 

During the course you will examine a number of real life PPAs to understand each of their components and the reasons behind their structure.  The course will start with a simple PPA and the delegates will develop the schedules of the PPA to account for the additional complexities found in real life projects to ensure that the PPA remains “bankable”. During the course we will also identify areas of the PPA that may be subject to negotiation and where the boundaries of those negotiations may lie.

 

After the course, delegates should be able to review PPAs with the ability to understand the reasons behind key aspects as well as being able to spot common omissions and avoid common mistakes.

Learning Outcomes

  • Learn how a PPA fits into the package of contracts required to develop a project.
  • Examine at the range of technology options for conventional and renewable projects.
  • Look at various PPA structure options, including tolling contracts, contract for differences (CFD) and feed in tariffs.
  • Discover the timeline of developing a power project and what can alter that timeline.
  • Compare project funding options and their effect on the PPA.
  • Risk allocation and risk mitigation measures in a PPA.
  • Examine basic tariff elements and the reason for their structure.
  • Look at typical demand profiles.
  • Investigate the economics of dispatch, including spark spread.
  • Discuss dispatch methodologies and mechanics.
  • Learn how to deal with imbalance payments in a PPA.
  • Look at testing regimes before and after the commercial operation date.
  • Understand the application of indexation in a PPA and how to deal with multiple currencies.
  • Structuring and sizing bonus and penalty mechanisms within a PPA.
  • Dealing with plant degradation and atmospheric conditions.
  • Look at how we can allow for plant upgrades and modification during the PPA.
  • Ensuring that the PPA reflects the maintenance scheduling and dispatch profile of the plant.
  • Examine how the value of a PPA can be assessed.
  • Discuss dispute resolution between parties of a PPA.
  • Pricing the transfer of the plant at the end of the term or in the event of default.
  • Examine the reasons behind refinancing and how any refinancing gains can be shared.

Who Should Attend

Participants are expected to have some limited experience of concepts and techniques in the power sector and to be seeking to improve their understanding and knowledge of the structuring of PPAs. The course is expected to be of relevance and interest to participants from the following business sectors:

  1. Power project developers
  2. Lawyers
  3. Bankers
  4. Technical consultants
  5. Construction contractors & power equipment suppliers
  6. Government officers involved in power project procurement/power purchasing
  7. Fuel suppliers
  8. Other power service providers

Course Faculty - Paul Olson

Paul Olson

Associate at Project Finance Solutions Ltd

Paul Olson

Paul is an experienced financial modeller with broad experience in the related analysis of commercial contracts and structures for major projects. Following an initial career in aerospace market forecasting for Asia he became a business analyst at Rolls-Royce Power Ventures (RRPV) responsible for producing financial models and investment analysis for project finance and equity funded power projects.
Paul has developed and reviewed financial models for:

  • Gas fired power stations throughout the world
  • Several wind power projects in the Europe
  • A coal fired power station in Africa
  • A number of UK PFI health projects
  • Electricity transmission networks in Eastern Europe
  • Desalination projects in the Middle East
  • Combined water and power projects in the Middle East
  • Gas pipeline projects
  • Electrical interconnector projects

He currently works for Project Financing Solutions, a boutique project finance advisory firm that advises a number of clients on financing power and infrastructure projects.

PAST TESTIMONIALS

“Easy understanding for those who are new/beginner in the field nevertheless the study/preparation need to do so for the continuous understanding.” – Corporate & Project Finance, Tenaga Nasional Berhad

“This is a comprehensive PPA course which is useful and will benefit personnel who involved in power industry.” – Manager (Technical), YTL Power International Berhad.

“Good training, trainer is experienced, materials are comprehensive.” – Analyst, Petronas.

“Being new in power industry, this course has brought me better appreciation of technicalities in the PPAs, which will certainly help in my job.” – Commercial Manager, Petronas

This training course has a limited attendance for up to 20 participants only. Sessions commence at 9am on all days, with short intervals at 10.30am and 3.30pm respectively. Refreshments will be provided in the short intervals. Lunch will be provided at 12:30pm for 1 hour. Sessions will end at 5pm on all days.

Unique Features with powerEDGE Training

• Pre-Course Questionnaire to help us focus on your learning objectives
• Detailed Course & Reference Manual for Continuous Learning and Sharing
• Practical Exercises & Case Examples to better understand the principles
• Limited class size to ensure One-to-One Interactivity
• Assessment at the end of the course to help you develop a Personal Action Plan