Power Purchase Agreements
Deliver agreements that advance vertical integrated utilities with additional power generation capacity in power purchase agreements
Attend this two-day programme to:
- Understand the complexity of power purchase agreements to assess the impact for your business
- Evaluate your current power purchase agreements and position yourself to influence the stakeholders involved.
- Broaden your knowledge of power purchase agreements on a global scale to evaluate opportunities
- Review the maturity of the agreement steps to map out progress
- Identify what enablers for robust power purchase agreements are available to support your development
- Grasp the complex aspects of these agreements to manage your risk
- Review to what extent the power purchase agreements will be beneficial for various market conditions
- Boost your practical knowledge through actual case studies taken from real-life scenarios
- Find the best solution to improve your stance in a power purchase agreement scenario that will best suit your operation of interest
What is the programme about?
The global trend of the electricity sector moving from government controlled monopoly services to liberalized market places creates a highly complex regulatory scene, where all technical, operational, regulatory, market interfacing and commercial requirements for long-term basis should be captured in the Power Purchase Agreement. There are different models for power purchase agreements. The earlier models are evolving to cover diverging generation types and the increasing technical complexity required to operate and dispatch generation capacity of renewable and dispersed micro generation. Power Purchase Agreements can be done in many ways, subject to the priority of the requirements.
This course has been specifically developed to guide you through the process of negotiating and drafting these complex agreements. It will highlight different structures, content and financing. Review the key challenges faced in the context of current agreements, provide you with robust understanding the commercial, financial and legal considerations.
All those involved in setting up power purchase agreements. Participants include:
- Network operators
- Governments and regulators
- Renewable power suppliers
- Large power users
- Independent power producers
- Banks and financial institutions
- Consultants
- Market operators
DAY 1
MODULE 1 – OVERVIEW OF ELECTRICITY POWER PURCHASE AGREEMENTS TYPES
The structure of the electricity supply industry – variations of power purchase agreements
- Evolution of the power purchase agreement
- Regulation of the power purchase agreement
- Variations of power purchase agreements
- Power purchase agreements and what the benefits are
Practical case study: Power purchase agreements and associated electricity market regulation from four different countries
The power purchase agreement role and objectives of electricity network regulation
- The role and benefits of an independent economic regulator
- The regulator as a proxy for a competitive market
- Promotion of investment
- Allowing investors freedom to manage their own risks and returns
- Maximisation of economic efficiency
- Taking into account social considerations and government policies
The power purchase agreement and the stakeholders
- Identification of the stakeholders for power purchase agreements
- What should and should not be comprised in long-term power purchase agreements?
- Subsidy schemes and the impact on power purchase agreements
- Environmental regulation, economic outlook, government credit rating, taxation
- Feedstock delivery agreements and responsibilities
- Supply guarantees and contractual commitments in power purchase agreements
Practical case study:Power purchase agreements stakeholder mapping
Power purchase agreement types
- Base generation, renewable, dispatch able
- Subsidy impact on power purchase agreement
- Impact of co-generation deliveries from power generation source, district heating, desalination
- Capacity payments versus free market
- Spinning reserve
- Supply guarantees and contractual commitments in power purchase agreements
Incentive based power purchase agreements
- Efficiency regulation
- How to encourage efficient operations
- CO2 regulations, politics, incentives
- Who should share benefits from improved efficiency
- The role of efficiency benchmarking
Practical case study: Efficiency based Power purchase agreement development identification
DAY 2
MODULE - DETAILS OF ELECTRICITY NETWORK REGULATION
Power purchase agreements and forecasting robustness
- Forecasting demand short term, and non controlled power generation supply gap
- Capacity payment ratio versus power supply payments – adapting fossil generation to reduced operation.
- Forecasting energy usage as a component of forecasting of revenue
- Forecasting demands for maintenance undertaking
- Forecasting capital and operational expenditure
- How to assess forecasts
The power purchase agreement and financing
- Power purchase agreement for competitive bidding processes
- The relevance and importance of regulated cost of capital in electricity network regulation
- How to determine the cost of capital
- Benchmarking of operational costs
- Renewable guaranteed off take pricing
Practical case study: Renewable impact on power generation market in Europe, how to not repeat
Interfacing challenges for the establishment and services for a generator for the power purchase agreement
- Custody transfer complexities, independence of
- How to handle shared assets and interconnection
- Own consumption metering
- Regulation of prices vs. revenue
- Pricing of non-core services, additional regulation requirements
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This course is only available as a custom course tailored for your business, contact us to discuss your requirements.
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