Valuation of PPAs
Financial and Risk Dimensions that Confer Value to PPAs
April 7-8, 2020 | Online :: Mountain Time
This is an Online Course! In lieu of recent developments with COVID-19, for the health and safety of our speakers and attendees, we have decided to move many of our events to Online Courses.
If this event is of interest you may also be interested in this related event
Renewable PPAs, April 6-7, 2020 | Online
This course provides a thorough review of financial and risk elements that influence the value of renewable energy power purchase agreements (PPAs). It is a companion to the Renewable Energy Power Purchase Agreements seminar, which instead focuses on key provisions and central legal concerns associated with PPAs.
The course will explore the many layers of financial considerations that confer value in these contracts for power. It will devote a granular 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.
The instructors will review and demonstrate multiple analyses and methodologies that provide important financial and risk guidance in the structuring of PPAs for project developers and off-takers.
- Review the fundamental financial components of PPA
- Examine the underlying risk factors that impact the value of a PPA
- Discussa term sheet
- 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
- Review important data/telemetry requirements and SCADA/IT constraints
- Evaluate risk distinctions that especially apply to virtual/financial PPAs
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 1.0 CEUs for this event.
PowerPoint presentations and classroom discussion will be used in this course for each learning outcome.
Requirements for Successful Completion of Program
You must be logged in for the entire presentation and send in the evaluation after the course is completed.
Tuesday, April 7, 2020
All times are in U.S. Mountain Time
12:30 – 1:00 p.m. :: Login and Welcome
1:00 – 1:15 p.m. :: Overview and Introductions
1:15 – 5:00 p.m. :: Program Content
(includes 15 min mid-afternoon break)
Understanding the Fundamental Financial Components of PPAs
Examining the Underlying Risk Factors that Impact the Value of a PPA
- 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 renewable generation base
- On-line date and tenor
- Generation and delivery schedule
- Relationship to other power generation in service pricing area
- Negative co-variance
- How does historical backcast impact contract value?
Term Sheet Review
- Key Commercial Terms
- Settlement point
- Curtailment risk
- Pricing and its sub-categories
5:00 p.m. :: Program Adjourns for Day
Wednesday, April 8, 2020
8:30 a.m. – 12:00 p.m. :: Program Content
(includes 15 min mid-morning break)
Evaluating Fleshed-out PPA Terms
Examining the Relationship Between 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
Project Production-Related Guarantees: Understanding the Difference
- Output and performance
- Forced curtailment
- Liquidated damages and termination rights
- Force Majeure
Differences Between the Standard Contractual Parameters Used for Wind and Solar Contracts
12:00 – 1:00 p.m. :: Lunch Break
1:00 – 4:45 p.m. :: Program Content
(includes 15 min mid-afternoon break)
Data/Telemetry Requirements and SCADA/IT Constraints
- Data needed from the project
- Method of access
- IT security constraints for both parties
- Registration requirements
- Metering requirements
- Multiple PPAs from the same renewable energy project
Bi-lateral vs Wholesale Market-Based PPAs
Risk Distinctions that Especially Apply to Virtual/Financial PPAs
- Portfolio monitoring
- Curtailment risk
- Proxy generation
- Production guarantees
- Availability guarantees
- Seasonal guarantees
- Fixed-quantity settlements
- Proper accounting treatment
The Symbiosis Between Hedges and PPAs
4:45 p.m. :: Program Adjournment
Brian Morrissey, Managing Director, Citizens Solar
Brian Morrissey is a Managing Director at Citizens Solar, a division of Citizens Energy Corporation, a national developer and owner / operator of distributed generation and small utility scale solar projects. He founded Citizens’ solar business in 2010 and is responsible for all solar related activities, including project origination, development, construction management, financing, and asset management. The company finances all of its projects with typical project finance structures and provides all sponsor equity for each portfolio. Prior to joining Citizens Energy Corporation, Mr. Morrissey was on the Global Power team at Cambridge Energy Research Associates (CERA), a leading energy consulting and research firm to international energy companies, governments, financial institutions, and technology providers. Before his tenure at CERA, Mr. Morrissey worked in GE Energy’s central marketing and strategy group, and was an officer in the U.S. Army.
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.
- You will receive a meeting invitation will include a link to join the meeting.
- Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
- You will need to join the appropriate meeting at the appropriate time.
- 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: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800
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
|Valuation of PPAs||US $ 1195.00|
This event has the following related events:
|Renewable PPAs||US $ 1195.00|
Take advantage of these discounts!
- Attend the Course and Renewable PPAs and pay US $ 1,995.00 per attendee (save US $ 395.00 each)
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 March 06, 2020 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