Renewable Corporate PPA
Training Course
14 hours online / 2 days face to face
Corporate Energy Managers
PPA Managers
Renewable Energy Consultants
Contract Managers
Energy Procurement Specialists
Project Finance Managers
Power Purchase Agreement Analysts
Sustainability Managers
Legal Advisors (Energy Sector)
Energy Buyers
Business Development Managers
Strategic Energy Advisors
Investment Managers
Regulatory Compliance Officers
Corporate Sustainability Directors
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. 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.
"Corporate PPAs in today’s power markets • Impact energy transition on Power Markets
• Renewable Corporate Sourcing
• What is a Corporate PPA
• Benefits for sellers and corporate buyers
• Support Mechanisms and Subsidies
• Role Renewable attributes
• Additionality
• Negative Prices
• Regulatory Barriers
Case Study: Example Fixed Price PPA Structure"
"Common PPA structures • Physical or sleeved
• Virtual
• Direct Wire
• Multi-buyer
• Cross Border
• Hybrid or multi-technology
Case Study: Budweiser Cross Border Virtual PPA"
"PPA Key Risks & Assessment • Risk Identification
• Project Risks & Mitigation
• Risk Allocation and Mitigation
• Counterparty Credit risk
• Risks Construction & Operational Phase
• Other important contract risks to assess
Case Study: Example PPA Risk Assessment"
"Pricing Structures • Fixed Pricing
• Index Pricing
• Option Structures
Case Studies: Annual Baseload Fixed Pricing Structure and Cap and Floor Pricing"
"Volume structures and risk allocation • Pay-as-produced
• Pre-defined profile
• All day peak load
• Annual Baseload
• Monthly Baseload
Case Studies: Example Pre-defined Profile and Baseload PPA"
PPA Risk Mitigation Structures
· Volume Firming Agreement
· Proxy Generation
Key Contract features Renewable Corporate PPA
• Duration
• Milestones & penalties
• Transmission issues
• Point of Delivery
• Curtailment
• Termination events
Case Study: the EFET Standard PPA Contract
Bankability & Financing Renewable PPAs
· What is ‘bankability’?
· Key bankability issues
· Project Finance Structures
· Role of Risk Mitigation
· Key Project Agreements
· Potential Sources of Funding
· Credit Enhancement
How to negotiate the best PPA deal
· The 4 golden rules
· Understand the interests of the different stakeholders
· How to structure the negotiations
· What are the pitfalls and how to avoid them
Final Q&A