PPA Valuation & Pricing
Financial and Risk Dimensions that Influence the Value of PPAs
April 12-13, 2022 | 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
This course provides a methodical 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, 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, April 12, 2022 : Central Time
12:45 – 1:00 p.m.
1:00 – 4:45 p.m.
1:00 – 1:20 p.m. :: Overview and Introductions
1:20 – 3:00 p.m. :: Market Trends and Externalities Influencing the Trajectory of PPA Prices and Practices
- PPA vs Virtual PPAs (VPPAs)
Changing Market Fundamentals and Effects on the Valuation of Renewable and Storage PPAs
- How renewable generation affects electricity markets
- Understanding basis risk under mass renewable deployment
- Buyer motivations for renewable procurement
- Annual RECs versus 24-7 clean energy
- Reliability and economic implications of storage paired with renewables
3:00 – 3:15 p.m. :: Afternoon Break
3:15 – 4:45 p.m. :: Finance & Risk Fundamentals of PPAs
- 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)
4:45 p.m. :: Program Adjourns for Day
Wednesday, April 13, 2022 : Central Time
8:45 – 9:00 a.m.
12:45 – 1:30 p.m.
9:00 a.m. – 5:00 p.m.
9:00 – 10:45 a.m. :: 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 all power generation in service pricing area
- Negative co-variance
- How does historical back-cast impact contract value?
10:45 – 11:00 a.m. :: Morning Break
11:00 a.m. – 12:45 p.m. :: Term Sheet Review – Key Commercial Terms
- Business acquisition perspective
- Off-taker perspective
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
12:45 – 1:30 p.m. :: Lunch Break
1:30 – 2:45 p.m. :: 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
2:45 – 3:00 p.m. :: Afternoon Break
3:00 – 4:45 p.m. :: Panel Discussion: Innovations on the PPA Landscape
4:45 p.m. :: Program Adjournment
vPPA “Speed-Dating” Primer
This workshop will provide utility, corporate and project development professionals engaged in the process of competitive vPPA renewable procurement — on both the buy and sell side — an overview of the transactional process to secure a power purchase agreement for renewable energy.
- Review vPPA counterparty options and market positioning
- Assess the steps necessary to engage a suitable negotiating partner
- Identify the bottom-line actions that vPPA parties should follow to transact their contracts
Tuesday, April 12, 2022 : Central Time
8:45 – 9:00 a.m.
9:00 a.m. – 12:15 p.m.
9:00 – 9:15 a.m. :: Overview and Introductions
9:15 am – 12:15 pm :: Identifying Your Preferred PPA Counterparty & Its Position in the Marketplace (includes 15 min break)
- Distribution utility
- Deregulated utility subsidiaries
- Retail utilities
- Energy service companies
- DER providers
- Corporate green energy resource and procurement organizations
Engaging your Negotiating Partner
- The process
- Engaging bidders and providing good information to get good bids
- Qualitative scoring
- Assessing developer/project delivery risk
- Quantitative valuation analysis
Getting to the Bottom-line
- Formulating your bid/offer
- Managing the internal process
- Pulling the trigger
12:15 p.m. :: Workshop Adjournment
Steve Birndorf is Director – Renewable Energy Consulting at NextEra Energy. 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.
Supria Ranade is Senior Director – Power Marketing and Wholesale Operations at Lightsource BP. She has more than 12 years of experience in the North American power, gas, and environmental markets. Prior to joining Lightsource BP, she worked on structured transactions at 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).
Brock Mosovsky, PhD 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.
Annie McClelland is Senior Manager of Origination at Renewable Energy Systems (RES), Americas. 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.
Nicolas Muszynski is Director of Energy Storage at Renewable Energy Systems (RES) Americas, where he has worked since 2008. Before serving in this current position for the past seven years, he was Senior Development Manager for Renewables and Transmission and Development Manager of Wind Energy. Prior to joining 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.
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.
- IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
- 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: 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 registrants for three business days after the event
|Single Seat - PPA Valuation & Pricing||US $ 1295.00|
|Pack of 5 Seats||US $ 4,780.00|
|Pack of 10 Seats||US $ 8,365.00|
|Pack of 20 Seats||US $ 14,340.00|
|Call us at 303.770.8800 if you have any specific questions on the volume discounts|
|* all other discounts do not apply to seat packs|
This event has the following workshops:
|vPPA Speed-Dating Primer||US $ 495.00
|Pack of 5 Seats||US $ 1980.00
|Pack of 10 Seats||US $ 3495.00
|Pack of 20 Seats||US $ 5940.00
This event has the following related events:
|Renewable Energy PPAs||US $ 895.00|
|Pack of 5 connections||US $ 3,580.00|
|Pack of 10 Connections||US $ 6,265.00|
|Pack of 20 Connections||US $ 10,740.00|
Take advantage of these discounts!
- Attend the Course and Renewable Energy PPAs and 1 workshop and pay US $ 2,495.00 per attendee (save US $ 190.00 each)
- Attend the Course and workshop and pay US $ 1,695.00 per attendee (save US $ 95.00 each)
- Attend the Course and Renewable Energy PPAs and pay US $ 2,095.00 per attendee (save US $ 95.00 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 11, 2022 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