Power Purchase Agreement

July 24 to 27, 2017 - Kuala Lumpur, Malaysia

Power Purchase Agreement

Structuring successful power purchase agreements (PPAs), managing competitive electricity markets, and attracting merchant power investments.

There are many moving pieces affecting the future of electric power development in emerging markets. Unlike the past Independent Power Project models, which featured standardized take-or-pay contracts – today’s market demands more innovative incentives to ensure better availability, better performance, as well as more attractive and sustainable mixtures of fuel sources. Economies throughout the region urgently need to master the key tools, models, and lessons learned for transforming and strengthening today’s electricity sector. These include the latest models in negotiating Power Purchase Agreements (PPAs), in designing and managing new competitive power markets, as well as attracting the right mix of renewable energy sources.

This 4-day Power Purchase Agreement comprehensive workshop gives you clear explanations of the new models of PPA risk allocation, of designing and managing competitive power markets, attracting private investments in renewable energy, through a series of real case examples of contracts and markets. Case Studies will include real examples from Africa, Asia, Europe, and North America. Furthermore, cases stimulate independent thinking and discussion among participants.

Key Learning Objectives

  • LEARN about all the essentials of different PPAs
  • NEGOTIATE fair and sustainable PPAs
  • STRUCTURE successful PPAs based upon your own company’s risk profile and risk allocation needs
  • EXPOSE to the frontiers of international experience in IPP development
  • LEARN theory and practice of pricing and tariff design
  • ANALYZE the relationship between Public, Private, and Government sector
  • PERFORM a policy and risk analysis of PPA contracts
  • EXPLORE a PPA relationship with EPC, O&M, Fuel Supply, and Interconnect Agreement
  • GAIN the tools and models in directing your country’s electricity transformation and market design plans
  • IMPROVE your awareness of the common pitfalls and mistakes to avoid in today’s private power investments
  • LEAD successful power project finance transactions
  • IDENTIFY how financial derivatives can be used as an effective hedge of financial and electricity market based risks

Course Certificate

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

Program Agenda

  • Global Trends Driving Power Purchase Agreements (PPAs), Electricity Market Designs & Merchant Power Investments
  • Overview of the Power Industry in Developing Countries
  • Structures and Working Energy Markets
  • Electricity Value Chain
  • Power Price Dynamics
  • Power Plant Economics
  • Overview of Project Finance in the Power Sector
  • Structuring Independent Power Projects (IPPs) & the Role of the Power Purchase Agreement (PPA)
  • Structuring & Contracting Requirements for Merchant Power Investments
  • Power Plant Valuation Approaches
  • Financing Merchant Power Investments & Electricity Price Modeling under Competition
  • Basic Types Power Sales Agreements
  • Other Contract Structures and Issues in Power and Renewable Energy Projects
  • Key Features Power Purchase Agreement (PPA)
  • Pricing PPA
  • Case Study: Analysis PPAs
  • Country case studies
  • Detailed example PPAs
  • Fundamentals of Negotiation Theory and Practice
  • Exercise: PPA Negotiation
  • Practice in negotiating a PPA, including the terms and price elements
  • Impact Terms Power Sales Contract on Power Plant Design
  • Risk Assessment
  • Final Exercise: Applying Best Practices and Lessons Learned to Your Organization’s Priorities

Infocus International Group (IIG) is a global business intelligence provider of strategic information and professional services for diverse business communities, designed to provide insights and to assist our clients on the global stage. Our training division provides extensive training programs throughout the continents ranging from Finance, Energy, Telecoms & IT, Retail, Marketing, Human Resource, Infrastructure, Mining, and Safety. These programmes are delivered by leading industry practitioners and field experts in a choice of layouts such as workshops, and in-house programmes.