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Oct 22—24, 2019
3 days
London, United Kingdom
GBP 3395 ≈USD 4116
GBP 1131 per day

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Description

Throughout the course, we will draw on a database of some 80 PPAs from around the world covering all type of power generation technologies. We will further discuss case studies from Emerging Markets and compare them with international experience in the power sector. The seminar experience will require interactive involvement of the delegates to discuss cases, conduct excel exercises and thorough reading of legal PPA documents.

THE PPA IN CONTEXT

  • Power Market Liberalization
  • IPP experience and PPP schemes
  • Requisites of a bankable PPA
  • PPA and fit into the overall project set-up
  • Understanding the link to Project Finance
  • Understanding the link to EPC agreements
  • Questionable Practices IPP Procurement

CASE STUDIES:

  • Review of lessons learned in Emerging Market IPP projects
  • A Comparison of Competitive Tenders and Direct Negotiations
  • Successful tendering program in South Africa, Mexico and Brazil

Agenda

ASIC TYPES AND KEY FEATURES OF PPAS

  • Overall structure of a PPA
  • PPA Definitions
  • PPA Milestones and Delays
  • Tolling and Wheeling Agreements
  • Impact of Dispatchable and Non-dispatchable power technologies
  • Contract for Differences (CfD)
  • Feed-in Tariffs

FINANCIAL PPA PROVISIONS

  • Tariff Structures & Escalators
  • Levelized cost of electricity
  • Capacity and Energy Charge
  • Seasonal weighting factors in a PPA
  • Calculation of Deemed Capacity and Deemed Energy
  • Bonus and Penalty mechanisms
  • Invoicing, Billing and Payments
  • Tax Exemptions
  • Purchasers Affordability of PPA payment obligations

CASES:

  • Review and critical discussion of Bujagali Hydropower plant in Uganda
  • Comparison of Solar PPA between South Africa and Egypt

OFFTAKER’s CREDIT WORTHINESS and CREDIT ENHANCEMENTS

  • Credit Support for Offtaker Obligations
  • Credit Support for the Project Company's Obligations
  • The need for Indexation and multiple currency PPA – “Review of Egyptian Solar PPA
  • indexation”
  • Government guarantees: “Backstopping the payment obligations of Tobene Power Project,
  • Senegal”
  • Partial Risk Guarantee: “Addressing Transmission Line Delay Risk With A Partial Risk
  • Guaranteein Lake Turkana Wind project in Kenia”
  • MIGA Political Risk Insurance: “Backstop ongoing payment obligations under KPLC PPAs for
  • Thika, Triumph and Gulf Power in Kenya”
  • Export Credit Agencies – “Last man standing: How Euler Hermes saved Round 1 Egyptian 50
  • MW solar project”
  • Developments Finance Institutions and Multilateral Banks “Rebuilding government reliability
  • via the Renewable Energy Trust fund from Argentina and the World Bank”
  • Currency risk hedging – IFC currency swaps
  • Currency risk guarantee fund – Indian Government to pool a solar dedicated hedge fund
  • Local currency lending – GuarantCo and TCX as important door openers
  • Internal liquidity facility – “Escrow Account for Azito Power Plant Cote d’Ivoire to collect
  • sector revenues”
  • External liquidity facility – “resolving short-term cash flow shortfall problems via the
  • Regional Liquidity Support Facility”
  • Liquidity guarantee to support West Nile Rural Electrification Project in Uganda
  • Put option, grant and convertible grant, Resource guarantee fund, Portfolio guarantee –
  • “Sarulla Geothermal Power Plant and the Indonesia Infrastructure Guarantee Fund”

TECHNICAL PPA PROVISIONS

  • Commissioning process, Acceptance and Performance testing.
  • Procurement of Electricity
  • Measurement and definition of capacity, availability and output
  • Metering and delivery point
  • Heat rate
  • Comparison of start rates, control of output and storage
  • Requirements for fuel specifications and quality
  • Maintenance programs for power generation plant
  • Off-take agreements for heat and certificates
  • Curtailment Provisions, Grid discipline and penalties

ADDITIONAL PPA PROVISIONS

  • Resolving Disputes
  • International Arbitration and Investment Agreements
  • Lenders Step-in Right
  • Cure Periods and Step-In Period
  • Local Content
  • Confidentiality
  • Boilerplate Provisions
  • Environmental & Social Requirements
  • Decommissioning requirements

DEFAULT AND TERMINATION

  • Buyer Default
  • Seller Default
  • Put and Call options and pricing
  • Post-Termination Obligations
  • Non-default Events
  • Lender Rights

RISK ALLOCATION AND MITIGATION

  • Development and Construction Phase Risks
  • Land lease agreements for land, cable routes and substation sites
  • Liquidated damages
  • Operational Phase Risks
  • Other Risks
  • Force Majeure
  • Insurance under construction and under operation
  • GROUP WORK: Detailed Risk Assessment of a PPA for a new power plant

SUCCESSFUL PPA NEGOTIATION

  • Importance of preparation
  • Define your must-obtain objectives and deal breakers
  • Best Alternative to a Negotiated Agreement
  • Conflict between the stakeholders – risk, margin, returns
  • Difference between issues, positions and interests
  • Win-win negotiations – understand the other side
  • Don’t over negotiate, the aim of a sustainable agreement
  • The Satisfaction triangle – procedural, emotional, substantive
  • Driving the process – criteria, timings, approvals

Who should attend

  • Business analysts
  • Business development and marketing managers
  • Commercial managers
  • Consultants
  • Contract managers
  • Corporate and project financing personnel
  • Economists
  • Engineers
  • External legal counsel
  • In-house legal counsel
  • Project managers
  • Regulators
  • Government officials

Attendance is a must for senior personnel involved in power projects.

Experts

Christian is an independent financial advisor with some 18 years’ experience in the power & renewable sector.He started out his career in a leading North European Strategy Consultancy, where he made substantial contributions to build the energy practice within the firm. He developed and imple...

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Detailed Description
Detailed Description

Next dates

Oct 22—24, 2019
3 days
London, United Kingdom
GBP 3395 ≈USD 4116
GBP 1131 per day

How it works

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