Understand the corporate PPA in context and deep-dive into the key features and overall structure of the corporate PPA.
This highly specific course will introduce the legal, financial and technical structure and hidden pitfalls of PPAs as a means for Sellers and Buyers to minimise their exposure to the volatility of price and volume. The structure of physical and financial PPAs will be thoroughly dissected and put into context of the overall risk assessment of the project transaction.
Can’t attend live? Access all recordings and slides through the World Hydrogen Leaders platform with a premium membership.
Course Objectives:
Leave this course with a comprehensive understanding of the components of PPAs
Explore a step-by-step guide of the basic types and key features of corporate PPAs
Put PPAs in the context of the wider contractual framework
Learn the best financial practice when working with PPAs
Put everything you learn into practice the very next day
Analyse case studies and best practice
This Course Includes:
Access to all three sessions each lasting approximately three hours
Interactive format with dedicated Q&A sections with the trainer
Flexible access on any device
A certificate of attendance after full completion of the course
Agenda
Each session includes dedicated Q&A sections throughout.
Session 1: 3rd September, 14:00 - 17:00 CEST
The Corporate PPA in context, basic types and key features of Corporate PPAs & overall structure of a PPA
The corporate PPA in context
Scale of the corporate PPA market compared to general market size
Who is buying who is selling what?
Drivers of corporate PPAs
Wholesale prices and Interconnection capacity as a mega driver
Basic types and key features of corporate PPAs
Existing assets versus newly developed assets
Sleeved and synthetic PPAs
Contract for difference
Bundled, certificates only or electricity only PPA
Behind the meter or ‘on-site’ PPAs
Fully contracted asset versus partly merchant asset
Pooling different load profiles as a buyer group
Multiple Corporate PPAs and first right of power
Overall structure of a PPA
Definition of commercial terms
Risk to bankability
Obligations and Undertakings of each party
Conditions Precedents to be on the safe side
PPA Definitions and Annexes
Session 2: 4th September, 14:00 - 17:00 CEST
PPA Timing and Milestones, Pre-Commercial Operation Date Period & Post-Commercial Operation Date Period
PPA Timing and Milestones
Power costs vs. prices, including levelised costs of energy (LCOEs) vs. market and PPA prices
Trends and data on renewable power costs and prices
Wholesale electricity: market price determinants and trends
Mixing renewable power and grid power (pros, cons and trade-offs)
Other key market economic trends, including equipment costs and performance
Pre-Commercial Operation Date Period
The role of clean hydrogen standards in green hydrogen economics
Comparing and contrasting current approaches to clean hydrogen standards
Other policy support mechanisms, including revenue subsidy models and tax credits
Direct connected vs. ‘virtual’ projects
Policy risk and uncertainty for green hydrogen developers
Post-Commercial Operation Date Period
Delivery Point, Metering and Losses – the devil is in the detail
Invoicing, Billing and Payments procedures or show me the money
Impact on working capital requirements and bankability
Availability, Planned Maintenance Outages and requested changes
Prudent Utility Practice and manufacturer warranties
Allowed Grid Unavailability Periods, Curtailment and Deemed Energy provisions
Session 3: 5th September, 14:00 - 17:00 CEST
PPA Tariff Structures, specific considerations for corporate PPAs, events beyond Business-As-Usual
PPA tariff structures
Understanding Levelized Cost of Electricity, Cost of Capital and their impact on tariffs
Tariff Structures for intermittent power generation technologies
Take-or-Pay versus Take-and-Pay contracts
The rationale for indexation and escalation of local, foreign inflation and currencies
Discount to market indexes
Price collar structures
Seasonal weighting factors in a PPA
Locational Marginal Pricing and grid charges
Specific considerations for corporate PPAs
Forecast wholesale price uncertainty and fixing the strike price
Counterparty risk and long term creditworthiness of the generator and off-taker
Power consumption load profile and changes over time
Additionality and Guarantee of Origin
Scheduling and balancing risks
Wholesale power price linked PPA
Events beyond Business-As-Usual
Dispute Resolution, Cure Periods and Arbitration
Lenders Step-in Rights
Political and Natural Force Majeure Events
Changes of Law and Stabilization clauses
Consequences of Force Majeure and Changes of Law
Seller or Buyer Event of Default
Termination rights of PPA by either side
Termination payment pricing methodology
What Attendees Are Saying
“It gave me a good idea of the most relevant aspects about the Corporate PPA world, both from buyer and seller perspective as well as the different options when evaluating a project. I found very useful the methodology used to conduct the training (online).”
“The course allowed us to understand what the corporate PPA trends are in different regions and learning about the different PPA structures.”
“We enjoyed the trainer’s Insight into typical ranges for metrics and his comments about the standard format and his analytic approach.”