Practical models and techniques for analyzing & structuring, drafting, and negotiating Renewable Energy PPAs for bankable green investments in today’s competitive energy markets

WHY ATTEND

• Best practices from international case studies of successful RE PPAs to avoid common pitfalls
• Direct the legal design of RE PPAs based on your own company’s risk profile and corporate goals
• Lead strategies for the design and regulation of new competitive electricity markets to attract renewable private power investments
• Develop clear incentives for bankable private investments in renewable energy generation
• Environmental, social & governance (ESG) impact mitigation techniques to ensure sustainability
• Manage successful renewable power project finance transactions

COURSE OVERVIEW

In the global marketplace of the 2020s, both developed and developing economies urgently need to master the key techniques and models for transforming to renewable generation while strengthening the reliability of new energy markets and systems. These focus on adapting and negotiating the latest models for Renewable Energy Power Purchase Agreements (RE PPAs) and on rapidly attracting new private investments in renewable energy sources.

Unlike past fossil-fuel based Independent Power Project (IPP) models that featured standardized take-or-pay contracts – today’s renewable energy markets demand more innovative incentives to attract RE supply, conform to RE generation availability, ensure power system reliability, as well as more

attractive and sustainable mixtures of fuel sources. Government power sector strategies are now struggling to choose among different practical incentives for new private investments in renewable technologies including solar energy, wind power, bio-mass incineration, and mini-hydro investments.

This interactive 5-session workshop will provide clear explanations of the new models of Renewable Energy PPA risk allocation, of ensuring project bankability, of allowing RE generators to compete in energy markets and power pools. The practical models for RE investment credit enhancements will be demonstrated through a series of real case examples of RE PPA contracts, renewable project finance transactions, and competitive energy markets. Case Studies will include real examples from Southeast Asia, South Asia, the Middle East, Europe, and North America.

COURSE CERTIFICATE

Upon the successful completion of this course, you will receive a Certificate of Attendance to testify your endeavor and serve towards your professional advancement.

SESSION 1

Global Trends Driving Renewable Power Generation Investments & the Rise of Competitive Energy Markets

• Energy sector unbundling sector masterplans, institutional models & new governance requirements, and transitioning to renewable generation
• Independent energy regulation bodies, roles, tools, and energy sector impacts
• Private sector investment requirements, project financing models, and transaction management models
• Renewable energy investment programs: incentives, models, and requirements
• Transitioning to competitive energy markets: market structure options, power exchanges, power pools, market regulatory requirements, and energy price risk management instruments
• Demand Side Management (DSM) technologies, strategies, incentives, payment structures, risks, and contract structures
• Improving system reliability: updating power grid codes, revising systems operation standards, energy reserve requirements, and energy market instruments

Structuring Power Purchase Agreements for Renewable Energy Requirements

• Key components of PPAs: pricing mechanism & formulae; quality output standards; and availability requirements
• Models for RE PPAs: off-take agreements, Take-or-Pay contracts, capacity payments, feed-in tariffs, carbon credits, and Merchant Power Projects (MPPs)
• Specifying RE PPA availability requirements and output performance specifications for renewables
• PPA models for hydroelectricity, wind, solar, geothermal, and waste-to- energy & biomass projects

Case Study: RE PPA deal origination, auction & bidding systems, risk allocations, key PPA terms & conditions, and bankability results

SESSION 2

Risk Identification, Risk Analysis Models, and Risk-Allocation Techniques for Today’s Green Energy Market

• Renewable power project risk registers & energy project risk identification: technical, environmental, financial, legal, and social impact risks
• PPA risk analysis techniques: assessing renewable power risk impacts and risk probabilities and risk valuation
• Risk mitigation options
• Risk allocation models and methods: specifying risk-sharing formulae and risk allocation techniques

Case Study: Renewable energy project risk identification, allocation, systematic review & analysis of the RE PPA

Group Exercise: Risk Identification, Analysis & Risk-Allocation for a Renewable Power Project

• RPP background & risk assessment assignments
• Group work completing financial structuring assignments on RPP risk identification, analysis, mitigation, and risk allocation
• Plenary discussion and assessment of group RPP risk assessment assignments

SESSION 3

Structuring Renewable Energy PPA Bankability

• Limited-recourse project finance requirements for renewables: structuring SPVs, RE project off-take structures, and bankability indicators
• Corporate financing options for small & medium-scale RE investments and balance sheet financing analysis
• Lender due diligence for RE project financing: financing agreements, SPV incorporation agreements, lender direct agreements, letters of comfort & financial performance guarantees, partial risk/credit guarantees
• Evaluating key RE project agreements: EPC contract, equipment supply contracts, O&M contracts, Independent Engineer contracts, etc.
• Monitoring & updating RE loan credit quality indicators
• Managing RE transaction advisors, defining transaction milestones, reaching commercial closure and financial closure
• Managing PPA conditions precedent, incorporation, site acquisition, permits, licenses, construction & installation, interconnection, testing, commissioning

Case Study: Analyzing Renewable Power Project Financing

RE PPA financing case studies from North America, South Asia, the Middle East, Western Europe, or Sub-Saharan Africa

Case studies in wind farms, solar parks, hydroelectric, waste-to-energy & bio-mass & geothermal renewable power project financing

PPA Financing Sources & Credit Enhancements

• Green energy funds, private equity, guarantee instruments, export credit guarantees, and carbon credit options and requirements
• Credit risk analysis methodologies for RE investments
• RE credit risk ratings, measures, and key indicators: quantitative and qualitative sources of credit risk for RE investments
• Stress testing, sensitivity analysis techniques
• Menu of options for credit enhancement techniques
• A case study in RE investment credit risk analysis & credit enhancements
• Managing cases of RE project loan re-financings
• The role of Standardization in institutional investors Financing of RE Investment

SESSION 4

Managing the Role of Renewable Generators in New, Emerging Competitive Energy Market

• Models for Power Exchanges/Power Pools and Opportunities for RE Producers
• Competitive energy market instruments & contracts
• Power market regulators & oversight requirements
• Transmission tariff structures in competitive wholesale power markets
• Energy market incentives for renewable power generation, investments, and instruments

Case Study: Renewable energy producers in competitive energy markets in North America, Western Europe & Latin America

RE PPA Contract Management, Performance Monitoring & Economic Regulation

• Structuring PPA reporting requirements and standardized procedures for performance monitoring
• PPA price-adjustment formulae, price-cap setting & rates of return for new capital investments
• Common areas of conflicts in RE contracts & RE Conflict Preparedness & Prevention
• Power sector investment dispute resolution mechanisms & skills
• RE Joint project management committees, communication, and mediation options
• Arbitration & binding arbitration techniques
• Litigation techniques & requirements

Case Study: Renewable energy project disputes & resolution Techniques

SESSION 5

Group Exercise: Analyzing & Negotiating a Renewable Energy PPA

• Group exercise background: evaluating a model RE PPA
• Group work: analyzing the model RE PPA & preparing for negotiations
• Role-playing negotiation sessions between Renewable Power sellers & buyers
• Plenary discussion and assessment of group assignments

Applying Best Practices and Lessons Learned to Your Organisation’s Renewable Power Priorities

WHO WILL BENEFIT?

• Power developers, investors, and energy fund
• Energy regulators & ministries, planners, and policy-makers
• Commercial lenders and development bankers
• Lawyers, consultants, and transaction advisors in the private power investment market
• Power project contractors, opera-tors, and equipment suppliers
• Energy fuel suppliers (oil, gas, coal, and renewables)
• Competitive energy market regulators, system operators, traders, and market makers

Energy sector consumers groups, NGOs, and alternative energy program managers