PPA Valuation & Pricing Best Practices
Financial and Risk Dimensions that Influence the Value and Pricing of PPAs
January 23-24, 2024 | Online :: Central Time
“A valuable course for beginners and highly experienced solar players.” Attorney, NextGen Solar Energy
“EUCI is interested not just in teaching industry topics, but also encouraging education for both sellers and buyers through facilitated discussion, allowing attendees to share experiences and learn from each other’s perspectives.” Director – Asset Management, Invenergy
“The course provided an excellent overview of PPA seller strategies and buyer considerations. The speakers were top-notch industry thought leaders and addressed practical questions raised by the attendees.” Vice President, AC Power LLC
“Informative webinars that are packed with good information and are moderated well.” NextEra Project Director
This course provides a methodical review of financial and risk elements that influence the value of renewable energy power purchase agreements (PPAs). It will explore the many layers of financial considerations that confer value in these PPA contracts for power. It will look at the dependent relationships that often make the difference between a PPA that accomplishes its objectives over an extended period versus one that can disappoint almost immediately.
Our expert instructors will review and demonstrate multiple analyses and methodologies that provide important financial and risk guidance in the structuring of PPAs for project developers, off-takers, investors, lenders and other transaction parties.
- Review the fundamental financial components of PPA
- Examine the underlying risk factors that impact the value of a PPA
- Evaluate fleshed-out PPA terms
- Assess the relationship between PPA price and value
- Discuss project production-related guarantees
- Identify the differences between the standard contractual parameters used for wind and solar contracts
- Evaluate risk distinctions that especially apply to virtual/financial PPAs
Tuesday, January 23, 2024 : Central Time
8:45 – 9:00 a.m.
Log In and Welcome
12:30 – 1:15 p.m.
9:00 a.m. – 4:45 p.m.
9:00 – 9:15 a.m. :: Overview and Introductions
9:15 – 10:30 a.m. :: A Survey of the PPA Landscape
- Corporate renewable energy transactions
- Types of off-takers
- Physical vs. Virtual PPAs (VPPAs)
- Market trends
- Variables that impact the markets of increasing renewables
- ERCOT deeper dive
- Impact to how PPAs are viewed
- Standard PPA settlement example
- Upside-share PPA
- Upside-share PPA with storage
Annie McClelland, Director – Origination & Regulatory Affairs, Renewable Energy Systems (RES), Americas
Nicolas Muszynski, Vice President – Energy Storage, Renewable Energy Systems (RES) Americas
10:30 – 10:45 a.m. :: Morning Break
10:45 a.m. – 12:30 p.m. :: PPA Pricing Trends and Their Cost Determinants
- Levelized Cost of Energy (LCOE)
- Historical wholesale market value by region
- Specific components
- Energy value and capacity value
- Value factor or capture ratio
- Negative prices and basis risk
- Impacts of curtailment
- Market value
- Looking ahead
- Influence of Inflation Reduction Act (IRA)
- Exploring the impact of CapEx and interest rate increases
- “Headroom” comparison to gas-fired generation
Mark Bolinger, Research Scientist – Electricity Markets & Policy Dept, Lawrence Berkeley National Laboratory (LBNL)
12:30 – 1:15 p.m. :: Lunch Break
1:15 – 2:30 p.m. :: Finance & Valuation Fundamentals of PPAs – A Developer’s Perspective
- What drives a PPA?
- What are typical returns?
- What is in a pro-forma?
- What drives returns? What are levers?
- What are investor concerns?
- Concept of risk and return
- Translating PPA legal terms into financial terms
- Role of consultant(s)
Steve Birndorf, Director – Renewable Energy Consulting, Usource (a NextEra Energy company)
2:30 – 2:45 p.m. :: Afternoon Break
2:45 – 4:30 p.m. :: Examining the Underlying Risk Factors that Impact PPA Valuation
- How market projections impact contract economics
- Traded curves (forwards) vs. consultant curves (forecasts)
- Components of curve generation
- Timing of generation and delivery
- Types of contracts available
- What happens when the same project offers to settle at a different hub?
- Relationship of value to installed generation base
- Online date and tenor
- Generation and delivery schedule
- Relationship to all power generation in service pricing area
- Negative covariance
- How does historical back-cast impact contract value?
Brock Mosovsky, Vice President – Analytics, cquant.io
4:30 p.m. :: Course Adjourns for Day
Wednesday, January 24, 2024 : Central Time
8:45 – 9:00 a.m.
9:00 a.m. – 12:30 p.m.
9:00 – 11:00 a.m. :: PPA Term Sheet Review – Key Commercial Terms
- Business acquisition perspective
- Off-taker perspective
Examining the Relationship Between PPA Price and Value
- Price of the carbon benefit
- Net settlement
- Single project vs. portfolio contract position(s)
- Mark-to-market (MtM) value of PPA over time as market conditions evolve
Impact on PPA Risk and Price of Project Production-Related Guarantees
- Output and performance
- Forced curtailment
Impact on PPA Risk and Price of Standard Contractual Parameters and Terms
- Liquidated damages and termination rights
- Force Majeure
- Differences between wind and solar contracts
Supria Ranade, Head – Power Markets, SoftBank Energy
11:00 – 11:15 a.m. :: Morning Break
11:15 a.m. – 12:30 p.m. :: Panel Discussion: Impact of Externalities on the PPA Landscape & Implications for Negotiations
- Supply Chain
- Customs impositions
- Inflation Reduction Act
- CHIPS Act
- Interest rates
- EPC and SME advisor staffing
- Impact on project developers of utilities to commission, develop and own renewable energy assets
- Schedule and cost risk
- Liquidated damages
- Target COD and curative periods
- Geographic and/or locational complications
- Consolidation in project development
- Pricing trajectories
- Forward price curves
12:30 p.m. :: Program Adjournment
Steve Birndorf is Director – Renewable Energy Consulting at Usource, a NextEra Energy company. He is a seasoned solar and renewable energy executive with more than 20 years of professional experience. With a foundation in consulting, finance, and business development, he has developed projects, led teams and built organizations. Steve has developed, financed and advised on more than $500M of utility scale and C&I solar projects, largely to private industry, municipalities, school districts and water agencies. Before joining the company in 2020, Mr. Birndorf’s industry career has included stints at Edison Energy, Valor Analytics, Sungevity Solar, Borrego Solar and AMSOLAR. He graduated magna cum laude from the University of Pennsylvania and earned his MS and MBA from the University of California at Berkeley.
Mark Bolinger is a Research Scientist in the Electricity Markets and Policy Department at Lawrence Berkeley National Laboratory. He conducts research and analysis on renewable energy, with a focus on cost, benefit, and market analysis as well as renewable energy policy analysis and assistance. Since joining LBNL, Mr. Bolinger has authored or co-authored more than 150 reports and articles, including 16 articles published in seven different archival journals. Previously, he worked at Bridgewater Associates, Inc. developing and implementing investment and trading strategies in global credit and foreign exchange markets for portfolios of institutional clientele. Mr. Bolinger holds a master’s degree in Energy and Resources from the University of California at Berkeley, and a bachelor’s degree from Dartmouth College.
Annie McClelland is Director of Origination & Regulatory Affairs at Renewable Energy Systems (RES), Americas. She assumed that position in 2021 after serving as Senior Manager of Origination. She has worked on the RES Americas origination team since 2017. In that capacity, she secures off-take agreements for utility-scale wind/solar projects, innovates deal structures to match client needs and works collaboratively across the company to achieve sales targets and ensure that development investments reflect market interest. Prior to joining the firm, Ms. McClelland served three years at the Citizens Campaign for the Environment. She earned her B.A. degree from Cornell University and MBA degree from the University of Colorado.
Brock Mosovsky, Ph.D., is Vice President of Analytics for cQuant.io. He has more than a dozen years’ experience developing, validating, and maintaining analytical models, with an emphasis on energy risk management, market analysis, and renewable energy valuation. Dr. Mosovsky has worked with some of the country’s largest utilities and independent power producers to help forecast value and mitigate risk for their diverse portfolios of physical and financial assets. He holds a Ph.D. in Applied Mathematics from the University of Colorado, Boulder and received a U.S. Fulbright Scholarship for study in the Netherlands.
Nicolas Muszynski is Vice President of Energy Storage at Renewable Energy Systems (RES) Americas, where he has worked since 2008. Before moving to this current position in late 2021, for the previous several years he served as Director of Energy Storage as well as Senior Development Manager for Renewables and Transmission and Development Manager of Wind Energy. Before he joined RES Americas, he was Development Manager at Wind Energy at Airtricity (acquired by E.ON Climate and Renewables) and Project Analyst at AWS Truewind. He started his career at Helimax Energie (acquired by DNV-GL Renewables) as a Wind Energy Project Engineer. He earned a Bachelor of Engineering (B.Eng.) degree in Engineering Physics at Université de Montréal – Ecole Polytechnique de Montréal.
Supria Ranade is Head of Power Markets at SoftBank Energy. She has more than 12 years of experience in the North American power, gas, and environmental markets. Prior to joining SoftBank Energy, she worked on structured transactions at Lightsource BP, Direct Energy, BGC Partners, and Evolution Markets. Ms. Ranade received her Bachelor of Science in Environmental Science, from Johns Hopkins University, a Master of Science at Columbia University. She currently serves on the Board of the Midwest Renewable Energy Tracking System (M-RETS).
We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.
- Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
- You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
- If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
- The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.
Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ
If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event
REGISTER NOW FOR THIS EVENT:
PPA Valuation & Pricing Best Practices
January 23-24, 2024 | Online
|Individual attendee(s) - $ 1195.00 each|
Volume pricing also available
Individual attendee tickets can be mixed with ticket packs for complete flexibility
|Pack of 5 attendees - $ 4,780.00 (20% discount)|
|Pack of 10 attendees - $ 8,365.00 (30% discount)|
|Pack of 20 attendees - $ 14,340.00 (40% discount)|
Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before December 22, 2023 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800
EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.
EUCI is authorized by IACET to offer 0.9 CEUs for this course.
Requirements for Successful Completion of Program
Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.
PowerPoint presentations and classroom discussion will be used in this course for each learning outcome.
Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.
Course CPE Credits: 11.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None
EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org