Power Purchase Agreements
Enabling Utilities to Contract with Private Power Projects
4 Day Training
Dates: Available on Request
Locations: Grayston Ridge Office Park, Sandton
Platform: Available In-Class / Online
Price: Available on Request
Course Introduction
The Power Purchase Agreements (PPA) training course is designed to provide in-depth knowledge and practical insights into the mechanisms and complexities of PPAs, which are essential for enabling utilities to contract with private power projects. As the global energy landscape evolves, understanding PPAs becomes critical for ensuring the successful financing, construction, and operation of power generation facilities, particularly with the increasing focus on renewable energy sources.
Course Objectives
The Prospen Africa Power Purchase Agreements course is designed to empower professionals to:
Understand the evolution of the global energy market and its impact on PPAs.
Learn about the complexities and bankability of PPAs.
Identify key generator issues and risk factors associated with PPAs.
Grasp the technicalities of default situations and curtailment in PPAs.
Gain knowledge of assignment, novation, and balancing energy systems.
Understand the significance of LNG SPAs, force majeure, and dispute resolution mechanisms.
Acquire a working knowledge of dispute resolution mechanisms and the key elements of international commercial arbitration.
Who should attend?
Commercial decision-makers
Legal professionals
Contracts personnel
Project managers
Individuals seeking to understand PPA mechanics.
Training Methodology
Our diverse instructional approaches ensure effective learning:
– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.
Training Outline
Introduction
Overview of Power Purchase Agreements (PPAs)
Importance of PPAs in the energy market.
Role of PPAs in facilitating contracts between utilities and private power projects.
Types of energy sources covered under PPAs, including renewable energy sources.
Module 1: Global Energy Market Evolution
Traditional Energy Sources
Detailed discussion on fossil fuels and the greenhouse gas debate.
Nuclear energy: Benefits and risks, including case studies (Chornobyl, Three Mile Island, Fukushima).
Emerging Energy Sources
Shale oil and gas: Global impacts.
Liquefied Natural Gas (LNG): Market development and future prospects.
Renewable energy sources: Solar, hydro, wind, and tidal power.
Market Dynamics
Rise of the spot market and merchant power plants.
Comparative case study: Solar 1 vs. Crescent Dune facility.
Module 2: Key Considerations in PPAs
Bankability and Financing
Understanding bankability and its complexities.
Sources of financing and their implications.
Contractual Variations
Different types of PPAs (fixed price, range, floating index based).
Explanation of Contracts for Difference (CFD).
Contractual Elements
Term length: Long-term vs. short-term implications.
Offtaker types: Wholesale vs. retail, utility vs. private.
Effective date, volume of supply, and capacity agreements.
Module 3: Technical and Risk Aspects
Generator Issues
Size and output considerations.
Proven vs. unproven technology.
Metering capabilities and fair market value.
Risk Factors
Tariff volatility.
Long-term funding and collateral issues.
Location and proximity challenges.
Feedstock security and grid connectivity.
Default Situations
Risk allocation, transmission access, and breach handling.
Termination provisions and post-termination obligations.
Module 4: Special Topics and Practical Exercises
Curtailment and Grid Balancing
Reasons for curtailment and its implications.
Balancing the energy system: Grid capacity, frequency requirements, demand response, and storage.
Legal and Contractual Mechanisms
Assignment and novation provisions.
LNG SPAs: Contractual adjustments, security of supply, and key issues.
Force Majeure and Arbitration
Comparison of legal systems on force majeure.
Importance of drafting FM clauses correctly.
International commercial arbitration: Process, enforceability, and challenges.
Interactive Elements
Case Studies and Class Discussions
Real-world examples and their analysis.
Group discussions on specific topics for deeper understanding.
Practical Exercises
Drafting and reviewing key contractual clauses.
Simulating arbitration and dispute resolution scenarios.
Q&A Sessions
Open forums for addressing specific queries from participants.
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