THE ART OF THE RENEWABLE CORPORATE POWER PURCHASE AGREEMENT (PPA)

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Dates:		It will be announced soon
Time:
Duration:		6 hours
Course language:		English
Course format:		Asynchronous and synchronous online courses
Patricipation fee:		€400 ( VAT INCLUDED)
Material level:
Download the seminar:

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NOTES

• Fees should be cleared in full by February 24^th, 2020. If the course does not take place, the full amount will be refunded.
• The Athens Stock Exchange may cancel the program or change the dates and times for the suggestions without any obligation.
• Participants will receive the course material as well as a certificate of attendance.

Introduction

The European electricity markets are changing fast as most countries are moving to market based arrangements for the production of renewable energy. This together with the increasing electricity and CO2 market prices and the decreased costs of producing wind and solar energy builds the case for a growth acceleration of renewable Corporate PPAs.

Although there are also several regulatory barriers and economic uncertainties. One regulatory hurdle is that the EU Winter Package will see developers that receive renewable energy subsidies should buy the Guarantees of Origin on a mandatory auction instead of getting these for free. In several countries there are regulatory hurdles to enter into Corporate PPAs. The new EU Renewable Energy Directive (RED II) should help remove these barriers to entry, thus opening countries such as Germany, France, Spain, Italy and Ireland to PPAs as well. What makes Corporate PPAs also difficult to grasp is that there up to now there is no standardization of contracts. There are several completely different structures that make comparing the different PPA structures a real challenge.

In the economic spectrum there is a lot of uncertainty about the future power prices. Lately we have seen a fast increase in Carbon price that has a direct impact on power prices as well. Energy probably is one of the most volatile commodities in the world and it is forecasted that the market prices will go up in the coming years. As a result, the operational costs for electricity will continue to increase without predictability for budgeting purposes. A renewable Corporate PPA would help a buyer hedge this operational risk by locking in a fixed price for power over a 10-20 year period. On the other hand, if the prices would remain relatively flat there would be less incentive for corporates to hedge against rising future power prices.

Despite all this, Renewable Corporate PPAs are quite popular and a very interesting instrument to sell and procure green power for almost any company. However, it is also a complex structure and market to understand.

During this intensive and highly interactive hands-on course Kasper Walet will give you guidance, tips and tricks how to best structure and negotiate a Corporate PPA in the fast changing regulatory environment of the renewable power markets in Greece and Europe.

Who Should Attend?

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

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

Benefits of attending

• Learn about all the essentials of the Renewable Corporate PPA
• Manage to perform a policy and risk analysis of PPA Contracts
• Learn how to make a tariff design for a PPA
• Learn about the different risks and how to mitigate these under the PPA
• Learn how to run a risk assessment
• Learn how to negotiate a Corporate PPA

Teaching Methodology

This highly interactive course will be based on lecture, discussions and case study exercises. Case studies and numerous examples from the Course Director's own experience of the best practices in the renewable PPA markets will be used to ensure understanding and demonstrate the application of concepts. The cases and examples support the application of the newly gathered knowledge in practical applications. Furthermore, cases stimulate independent thinking and discussion among participants.

Agenda

Corporate PPAs in today's power markets

• Impact energy transition on Power Markets
• Benefits for sellers and corporate buyers
• Role different parties involved
• Less subsidy more flexibility
• Role Certificates of Origin
• Status different Markets across Europe

The Corporate Renewable PPA; issues to consider

• Contract structures
  • ‘Sleeved' or ‘Physical' structure
  • Virtual or Financial PPAs
  • Direct Line
  • Cross Border PPA
• What makes a bankable PPA?
• Duration
• Pricing structures
• Regulatory Barriers
• Scheduling and balancing
• Renewable attributes of corporate renewable PPAs
  • What is renewable supply and Additionality

Multiple buyers PPAs

• Drivers for multiple-buyer PPAs
• Risk Sharing for buyers and developers
• Increasing flexibility
• Better bargaining power
• Structuring multiple-buyer PPAs
• Competition issues

Key Contract features Corporate PPA

• Duration
• Electricity output/contracted capacity
• Proof of renewable energy
• Change in Law
• Subsidies/new benefits
• Counterparty credit risk
• Direct Agreement
• Portfolios
• Operation & Maintenance
• Transmission issues
• Point of Delivery
• Corporate buyer approvals process
• Defaults
• Caps on liabilities
• Coordination between the Generator, Buyer and Licensed Supplier
• Termination events
• Standard terms and conditions

Risk Assessment; A PPA is all about properly allocating risks

• Risk Allocation and Mitigation
• Risks Construction and Operational Phase
• Other important risks to assess:
  • Volume risk
  • Profile risk
  • Balancing risk
  • Counterparty Credit risk
  • Price risk
  • Tenor risk
  • Change in law risk
  • Force majeure risk
• Sensitivity Analysis

Renewable PPA Hedging Products

• Long term Futures
• Revenue Proxy Swap
• Volume Firming Contract
• Revenue Generation Swap
• Revenue Put Option

Final Discussion and Q & A

 Case studies and examples

 The theory will be supported by several real life examples and case studies.

Instructor

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Kasper Walet