Course Objectives and Learning Outcomes:

• Understand the risks and trading requirements for generators, especially wind / solar, in Ireland, also in the context of support schemes available to renewables
• Understand the rationale for entering into a PPA for renewables, in particular the role of a PPA in providing a route to market and/or managing exposure to (volume and market price) risk
• Understand different PPA contract types, their benefits in terms of value creation and distribution of risk between the parties
• Understand the structure of a typical PPA contract, the key commercial terms, and the drivers of bankability
• Understand how (different types of) PPAs are priced, on both sides of the contract, and how this could influence negotiations
• Understand the current / future PPA market in Ireland
• Understand how to obtain and negotiate a PPA, e.g. the typical process, the timeline, the pitfalls and must dos

Who should attend

Asset owners and developers, utilities, investors, potential lenders, traders, technology suppliers, advisors

Course Content

1. Setting the scene

• Introduction to I-SEM, in particular to the trading arrangements and key policies affecting the market design

• Support schemes, participation of renewables to the market, and expected renewables volumes

• Rationale for entering into a Power Purchase Agreement (from both a supply – i.e. generation – and demand – i.e. utility/traders and corporate consumers – perspective)

2. The basics of a Power Purchase Agreement

• PPAs as route to market and/or hedging tool

• Parties to the agreement, and their role & expectations

• Broad (corporate) PPA contract types and their key characteristics in terms of legal framework (e.g. bilateral, tripartite, back-to-back, etc.) and commercial terms (e.g. financial vs virtual, pricing, etc.)

3. Deep dive into a PPA deal

• Typical structure of a PPA document

• Key terms in a PPA contract – e.g. the definition and the mechanics of the delivery period, the type of delivery (financial vs physical), products, capacity, volume, price for energy and balancing, payments & invoicing, financial securities (type, level and mechanics, e.g. credit rating triggers), termination payments – and their impact on value and bankability

• How a PPA is typically priced – fair value, cost-basis, etc.

4. A glance to the future and to negotiations

• Current conditions and outlook for the PPA market in Ireland

• Renewable Electricity Corporate Power Purchase Agreements Roadmap

• Typical process and timeline for securing a PPA – incl. differences between corporate and utility/trader negotiations

• Negotiation pitfalls and must dos (based on real life case studies)

5. Conclusions / Q&A

If of interest and if time allows, we could offer a couple of one-to-one ‘contract surgery’ sessions at the end the course to discuss specific circumstances of individual participants, which single organisations may be uncomfortable sharing with the wider group because of commercial sensitiveness

About the trainer

Dr David Gascon and Francesca Tedeschi. 

David has over 15 years of experience working in the Irish Power Market and he is an expert in I-SEM and DS3. David has led Naturgy’s and BnM work on routes to market in the All-Island market and has experience on both sides of the contracts, and with corporate PPAs materialising in he first 15 year CPPA for IKEA back in 2013. Francesca is a recognised expert in European electricity markets with a decade-long career in the industry. She has worked across regulation and policy, market modelling and fundamental analysis, commercial due diligence and asset valuation in most European geographies. Francesca has a consolidated experience in providing strategic advice as well as structuring and negotiation of Power Purchase Agreements. She regularly advises energy consumers, RES generators and traders on energy sales/procurement strategies.