Course Overview

A Power Purchase Agreement (PPA) is a legally binding contract between a renewable energy producer and an end user (often a big electricity user) that specifies the terms under which the end user agrees to purchase renewable energy from the developer at a specified price. A Power Purchase Agreement (PPA) may be thought of as the selling of a project and its natural elements since it is a binding agreement that enables a renewable generator to evaluate the project’s profitability and risk and make an investment choice accordingly.

What are the main benefits of PPA for the consumer? The user receives a consistent supply of energy that can be traced back to a particular asset, which is one of the main advantages of PPA. Extra value is created through PPAs as by lowering the quantity of electricity produced from harmful sources, it becomes possible to spend on renewable assets. Electricity is provided to customers at affordable rates through considerable markdowns on current and future prices. PPA allows for the customisation of products to meet specific user requirements.

What are the different types of PPA? Depending on the source of the power, various forms of PPA exist. An On-site PPA is an agreement to purchase power from a temporary plant installed on the customer’s premises and interconnected with the building’s electrical system. The renewable energy developer finances the venture and is responsible for the plant’s construction, commissioning, operation, and maintenance. As the customer will no longer need as much energy from the grid thanks to the solar panels, the developer can offer the customer a lower rate for the energy they produce themselves. An Off-site PPA is an agreement between two parties whereby electricity generated at a plant is purchased and then transmitted or distributed through the national electricity grid.

The Power Purchase Agreement Training Course from Zoe Talent Solutions examines Power Purchase Agreements (PPAs) for both conventional and sustainable energy projects, highlighting the fast changes that occur as technology advances and the commercial viability gap closes. In this course, the PPAs for corporations and synthetic PPAs are also covered. An in-depth look at the business and strategic aspects of power purchase agreements is made a part of this course. The difference in feasibility between renewable and conventional technologies has almost vanished, and thus the PPAs’ conventional structure will need to change to keep up with the shifting scenario. The essential elements of various power purchase agreements are explored in depth during the course, as well as how risks may be assessed, apportioned, and managed. Through a series of real-world contract and trade examples, this interactive training course explains the new models of PPA risk transfer, establishes and manages high-performance markets, and encourages private investments in renewable energy.

Course Objectives

The Power Purchase Agreement (PPA) training course by Zoe Talent Solutions is built with the following objectives:

• To gain an understanding of PPA’s clauses, and how they can be used to enhance as well as secure the project’s revenue
• To understand various variations of PPA and their current use in diverse markets
• To implement innovation in the resolution of claims and conflicts
• To highlight PPA as an integral part of a project’s risk management framework
• To understand all steps of the PPA, including discussion, construction, and administration
• To develop skills as a negotiator to maximise the benefits of a PPA

Training Methodology

The training will utilize the following training methods:

• Interactive lectures by industry experts
• Practical and results-oriented learning paradigm
• Use of case studies, roleplays, action planning, and practice sessions
• Feedback-based interaction
• Q&A and debates

This course follows our standard format of “Do-Review-Learn-Apply,” which is used across all of our other offerings.

Organisation Benefits

This training course from Zoe Talent Solutions will benefit an organisation in the following ways:

• Increasing the skills of those involved in the deal and implementation of PPAs will become an added advantage for the organisation
• It will become easier for the project and corporate managing directors to deal with the contractual components of a PPA
• Knowing how to assign and manage risk and how to avoid claims and conflicts will be a boon
• Learning of avoiding failure of the project, expensive modifications, and cost overruns caused by a lack of risk knowledge and management will result in better project and contract management
• Obtaining an understanding of the true impact of legal compensation and limitations of liability will reduce the organisation’s vulnerability to project risks

Personal Benefits

This training course from Zoe Talent Solutions will benefit a participant in the following ways:

• Discover the fundamentals of PPAs
• Recognize the ramifications and risks of various technological decisions
• Monitor as well as handle claims and disputes efficiently
• Recognize the critical components of a PPA’s design and operation
• Appreciate and carry out risk assessments for energy-related initiatives
• Discover how to utilise financial derivatives to effectively hedge financial and electrical business risks

Who Should Attend?

This training is designed for:

• Agencies that deal with legal and advisory issues
• Analysts in the field of business
• Supervisors of Business Design and Commercialization
• Leaders of commercial enterprises
• Advisors
• Managers of Contracts
• Personnel in charge of business and development financing

Course Outline

Module 1: Introduction and Key Features of a Power Purchase Agreement

• Introductory to the Power Industry and the PPA’s Role
• Participants in the Project – Description
• Contract, Permit, License, and Other Development Arrangements and Business Models
• Commandments of the Creator

Module 2: Legal Assignments

• Observing, checking and quantifying
• Buyer Obligations
• Payment and Value
• Avoid Transactions at Peak Times
• Reduced harms

Module 3: Importance of Provisions in a PPA

• Stretching the Term
• Assures competence
• Exploration and Renovation Duties of the SPV
• Power & Licensed Resources
• Claims & Depictions

Module 4: Initiation of Testing and Commercial Entities

• Causes of Violation & Immediate Cancellation Rights
• Walk Rights for Off-takers
• Exceptions for Unforeseen Circumstances
• Responsibility and Settlement
• A legal change

Module 5: Risk Assessment

• Latency and Efficiency Damages – Dismantled
• Achievement Bonds
• Budget Overruns & Change Requests
• Managing Political Threats
• Managing Foreign Exchange Risks
• Transportation Requirements

Module 6: Industrial Aspects of a PPA

• Taxation, Cost, and Quantity
• Monitoring
• Commitments
• Management of risk

Module 7: Negotiate the Most Beneficial PPA

• Make a Settlement Agreement
• Establish a Bargaining Structure
• Balance Needs of Buyers and Sellers
• Achieve a Long-Term Agreement

Module 8: Lessons in Mediation

• Discuss major objectives to be met and failure consequences
• Consumer Guarantees should be negotiated