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By - Jon Brown

Valuation of PPAs
Financial and Risk Dimensions that Confer Value to PPAs
April 7-8, 2020 | Denver, CO

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Overview

If this event is of interest you may also be interested in this related event

Renewable PPAs, April 6-7, 2020 in Denver, CO

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.  

Learning Outcomes   

  • 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

Credits

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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.

 

Requirements for Successful Completion of Program 

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

PowerPoint presentations and classroom discussion will be used in this course for each learning outcome. 

Agenda

Tuesday, April 7, 2020

12:30 – 1:00 p.m. :: Registration

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

  • Curves
    • How market projections impact contract economics
    • Traded curves (forwards) vs consultant curves (forecasts)
    • Components of curve generation
  •  Shapes
    • Timing of generation and delivery
  •  Hub
    • Types of contracts available
    • What happens when the same project offers to settle at a different hub?
  •  Penetration
    • Relationship of value to installed renewable generation base
  •  Timing
    • 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
    • Security
    • Pricing and its sub-categories
    • etc

5:00 p.m. :: Program Adjourns for Day


Wednesday, April 8, 2020 

8:00 – 8:30 a.m. :: Continental Breakfast

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

  • Availability
  • 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. :: Group Luncheon

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

ISO/RTO-Specific Considerations

  • 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

  • Credit
  • 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

Instructor

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. 

Location

Hilton Garden Inn Denver/Cherry Creek

600 S Colorado Blvd

Denver, CO 80246

Reserve your room:

please call 1-303-262-8784

Click here to book online.

Room Block Reserved For:

Nights of April 5 – 7, 2020

Room rate through EUCI:

$140.00 single or double plus applicable taxes
Make your reservations prior to March 16, 2020.

Register

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

EventEarly Bird Before
Friday, March 20, 2020
Standard RateAttendees

This event has the following related events:

Renewable PPAsUS $ 1195.00 US $ 1395.00

Take advantage of these discounts!

  • Attend the Course and Renewable PPAs and pay US $ 2,195.00 per attendee (save US $ 195.00 each)

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

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

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