Purchasing Power Agreement (PPA)

This specialised course is designed to provide a comprehensive understanding of the legal, financial, and technical frameworks of Power Purchase Agreements (PPAs), highlighting potential pitfalls and strategies for minimizing exposure to price and volume volatility. The course thoroughly examines both physical and financial PPAs within the broader context of project risk assessment. Participants will compare the two types of PPAs, explore different tariff structures—based on either costs or market prices—and assess their implications for sellers and buyers. As a critical component of any energy project, PPAs can cover all types of energy, including renewable and non-renewable sources. Mastering the negotiation of a bankable PPA is essential for ensuring the successful launch and financing of a project.

Objective

• Analyze the structure and key terms of a Power Purchase Agreement (PPA)
• Understand the commercial and legal considerations involved in negotiating and executing a PPA
• Identify the different types of PPAs used in power project implementation
• Apply effective strategies for the negotiation, execution, and management of a PPA
• Understand risk management considerations and the allocation and limitation of liability between energy sellers and buyers