Mastering Power Purchase Agreements
Mastering Power Purchase Agreements
The viability gap between renewable and thermal technologies has been all-but extinguished. The traditional structure of PPAs will need to undergo adaptation to react to this changing landscape.
This course examines the implications of these changes, and studies the innovations that are already being witnessed in PPAs that are currently being negotiated, and which have been concluded in the recent past.
You will learn about:
- The offtake volume and the tariff drivers of the revenue
- The costs and constraints upon the purchaser/offtaker
- The distribution of responsibility for the various risks that may arise during the lifetime of the project
- The compensations that are applicable if the counterparty fails to deliver the contacted responsibilities
- The circumstances where the arrangements can be terminated by either party
You will also have an appreciation of how that negotiation will be influenced by
- Financier's attitude to debt serviceability in limited recourse financing structures
- Private sponsors
- Legal constraints
- The interface between the PPA (operating phase) and the construction agreement(s) (pre-completion)
- The interface between the PPA and the O&M agreement
