Power Purchase Agreement Bankability

Power Purchase Agreement Bankability

WHEN

25 – 27 August 2020

WHERE

Singapore

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Overview

A practical guide to bankable PPAs for energy projects, blending legal, financial and technical perspectives

According to the IEA, “More than 70% of the $2 trillion required each year in energy supply investment either comes from state-directed entities or receives a full or partial revenue guarantee.” This revenue guarantee is typically offered as a Power Purchase Agreement in the electricity sector and therefore a crucial element in a project finance environment for IPPs. Bankability of PPAs is especially challenging as most electricity demand growth takes place in emerging countries with offtaker’s creditworthiness at least questionable. Therefore the bankability of PPAs is not only driven by complex contractual clauses within the commercial agreement but by the power sector and country context embedding the foreign invested IPP. More often than not, the project set up requires additional credit enhancements instruments backing the PPA to reach financial close.

This PPA workshop will draw on a database of some 100 PPAs from across the world and all types of power generation technologies. We will further discuss a wide range of country and project 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 exercises and thorough reading of legal documents.

Course Highlights

  • Real world PPAs to be used during the course
  • Blending legal, financial and technical elements in straightforward way
  • Hands-on exercises and group work
  • Zooming in and out from PPA clauses to project and country context
  • Discussion of many case studies to apply learning topics
  • Global expert trainer in the field of PPA and project finance

Benefits of Attending

  • Understand the link and importance of the PPA within the project set-up
  • Learn how to analyse a PPA hands-on
  • Understand the key provisions of a PPA and its impact on project financing
  • Anticipate and mitigate risks through the PPA process
  • Learn how to identify red flags within the PPA, both from seller and buyer’s side
  • Apply your learnings from day one at work

Course Agenda

DAY 1

  • The Context of the IPP within the Power Sector
  • Case Study: Comparing two countries power sector reforms and their outcome
  • Context of the PPA within the Project Set-Up
  • Case Study: Financial structure of a natural gas IPP in an emerging market
  • Overall Structure of a PPA
  • Group Work: Seller & buyer role play getting to terms
  • PPA Timing and Milestones
  • Group Exercise: Analysis & comparison of two PPA timelines as the core framework for allocating risk between seller and buyer

DAY 2

  • Pre-Commercial Operation Date Period
  • Post-Commercial Operation Date Period
  • Events Beyond Business-As-Usual
  • Group Exercise: Structured risk allocation between seller and buyer

DAY 3

  • PPA Tariff Structures
  • Case Study: Split tariff and indexation in two different PPAs from emerging markets
  • Group Exercise: Tariff simulation and sensitivity analysis of key variables for various types of remuneration schemes
  • Offtaker’s Credit Worthiness and Credit Enhancement Instruments

Training Methodology

  • Highly interactive group discussions
  • Pre-course reading
  • Real world sample contracts for revision
  • Due diligence checklist database
  • Regional case studies

Pre-Course Questionnaire

We would like to customise the workshop based on your specific needs. Pre-Course Questionnaire will be sent prior to the workshop for analyse in advance and to be addressed during the course.

Course Certificate

Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

What People Are Saying

❛❛ I learned a lot on the essential aspects of PPA, such as different form and structure of PPA’s, risks (economic, technical, legal), the economics behind PPA’s, analysis of cases, etc. We also received very useful templates of PPA’s amongst others. Trainer is an expert and animated the seminar in a very dynamic, enthusiastic and professional way. In 2 words: strongly recommended. ❜❜
ENGIE
❛❛ The lectures were well prepared and on target. They have provided a deep insight and useful roadmap into the complexities of PPA’s which have proven to be immediately relevant to our work. ❜❜
Aquarius Project Associates Limited
❛❛ The course was very well organised and built up systematically, touching on all relevant fields. Trainer is able to engage all participants with different background and experience level. In addition to classic structuring matters, I was deeply impressed by his great and rare to find understanding of Power Purchase Agreements both utility scale and corporate level. ❜❜
Soventix
❛❛ In that 3-day session, course facilitator was able to cover almost all significant aspects of the topic in such a synergistic way that augmented the whole learning experience of the participants. I still follow the notes and the knowledge gathered from his seminar in my daily work activities. Many thanks. ❜❜
ib vogt GmbH
❛❛ The knowledge obtained was so practical and instrumental in me and my colleagues negotiating PPAs between a Generator and a Single Buyer in our energy sector. ❜❜
EGENCO
❛❛ It was very clear and informative. Clearly an expert on the topic, he engaged the class across a wide range of topics relating to the subject matter and came prepared with excellent teaching materials. I would highly commend it. ❜❜
Allen & Overy LLP
❛❛ Course trainer is a very experienced professional with a superb ability to share his vast knowledge about PPA structures with others. An all-around lecturer! ❜❜
Antuko
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Who Will Attend

  • Officials of governments and regulatory bodies
  • National utilities and grid operators
  • Development finance institutions and commercial banks
  • Lawyers, contract managers, developers and equity investors
  • IPPs, oil and gas companies
  • EPC contractors and O&M service providers

Endorsers & Media Partners

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