Power Purchase Agreement from Commercial and Legal Perspectives

Power Purchase Agreement from Commercial and Legal Perspectives

The Power Purchase Agreement (PPA) is complex component of an energy project and can be used to purchase any type of energy including both renewal and non-renewable. Negotiating a bankable Power Purchase Agreement is essential if a project is to take off. A PPA must take into account present regulatory environment must also include provisions that will lock in price and quantity and manage risk factors as the agreement is normally for a 20-30 year period. Participant in this training course will be given a road map of how to navigate through a PPA and have an in-depth knowledge of the essential clauses.Power Purchase Agreement from Commercial and Legal Perspective training course will draw on a wide range of Power Purchase Agreements and case studies to elaborate on contractual, commercial and risk management issues that will invariably need to be addressed in a PPA. The success of an energy project will depend largely on how well a PPA is negotiated and executed. This training course aims to give participants the tools to achieve this. The participants will experience an interactive training course involving discussion of several case studies from around the world, reading of model Power Purchase Agreements and participating in a mock negotiation of a PPA.

  • The different project structures and models for a PPA

  • The roles and responsibilities of the seller and buyer under a PPA

  • The essential contractual clauses necessary

  • Risk management strategies

  • Guarantees and warranties

  • Pricing, tariffs and take or pay obligations

  • Contract compliance and penalties

  • Avoiding common errors and mistakes in negotiating a PPA agreement

  • Adopting risk management strategies and the allocation and limitation of liability between seller and buyers of energy

At the end of this training course, you will learn to

  • Analyse the structure of the Power Purchase Agreement document and the terms of a power purchase agreement

  • Understand the commercial and legal issues relating to the negotiation and execution of a PPA

  • Know the different types of Power Purchase Agreements used for implementing power projects

  • Apply effective strategies negotiation, execution and implementation of a PPA

  • Understand the various considerations in adopting risk management measures and the allocation and limitation of liability between Sellers and Buyers of energy

How to negotiate an effective Power Purchase Agreement encompassing all the critical issues faced upon instances of delayed scheduled, cost overruns, substandard quality, pricing volatility, and many more real-life problem scenarios

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