COURSES




POWER PURCHASE AGREEMENTS

By its very nature power produced is incapable of storage. It is for this very reason that every viable Power Project – owner, investor and lender would like to have assurance of a ready off-taker by the date the Power Project is completed and formally commissioned. As part of the Power Project transaction process, all project related parties would like to have proof of this assurance hence the closure of a power purchase agreement is a critical delivery in the packaging of a Power Project the world over. The trend of the electricity sector globally has moved from government-controlled monopoly services to liberalized market places and created a highly complex regulatory scene, where all technical, operational, regulatory, market-interfacing and commercial requirements for long-term investments are expected to be captured in a Power Purchase Agreement. There are different models for power purchase agreements. The earlier models of power purchase agreements have now evolved to include diverging generation types and also assume the possession of appreciation of 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. Given the African Governments’ current drive for infrastructure development as an engine for economic development, it is pertinent for all parties involved in packaging power projects to appreciate the intricacies of negotiating, drafting and implementing power purchase agreements and their role in the power supply chain. The Energy Sector is therefore set to take center stage in supporting the very core of economic development across all sectors in the African countries. This one week program has been purposely developed to equip transaction advisors, lenders, project investors, Government advisors and lawyers with the necessary technical knowledge, negotiation tact, commercial and legal considerations for the closure of sound power purchase agreements.

PROGRAM CONTENT
•Understanding a Power Purchase Agreement
•Relevance of power purchase agreements in the Power supply chain
•Identification of relevant stakeholders in a power purchase deal
•Roles and responsibilities of the different stakeholders in a power purchase agreement
•Types of Off-takers in the Energy Sector
•Toolkit for negotiation of Power Purchase Agreements
•Commercial considerations for parties in a power purchase agreement
•Technical considerations for parties in a power purchase agreement
•The mechanics of purchasing power from a Power Generating Facility
•Identifying, mitigating and managing risks in power purchase deals
•Dispute resolution clause in a power purchase agreement
•Tariff determination and relevance to power purchase deals
•Handling variations in Power Purchase Agreements
•Case study of typical power purchase agreements
•The Stakeholders’ expectations in a viable power purchase agreement