Serving the energy industry for over 30 years
By - Jon Brown

Valuation of PPAs
Financial and Risk Dimensions that Confer Value to PPAs
October 14-15, 2020 | Online :: Central Time

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Overview

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 Energy PPAs, October 13-14, 2020

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.  

Learning Outcomes   

  • 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

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.

Instructional Methods

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.

Agenda

Wednesday, October 14, 2020 Central 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)


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

Economic Valuation of the PPA

  • The process
  • Engaging bidders and providing good information to get good bids
  • Qualitative scoring
  • Assessing developer/project delivery risk
  • Quantitative valuation analysis
  • Case studies

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?

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


Thursday, October 15, 2020 Central Time

8:45 – 9:00 am :: Log In

9:00 a.m. – 12:00 p.m. :: Program Content

(includes 15 min mid-morning break)


Term Sheet Review: Key Commercial Terms 

    • Examples
    • 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

Project Production-Related Guarantees:  Understanding the Difference

  • Availability
  • Output and performance
  • Forced curtailment

Standard Contractual Parameters

  • Liquidated damages and termination rights
  • Force Majeure
  • Differences between wind and solar contracts

12:30 – 1:15 p.m. :: Lunch Break

1:15 – 4:30 p.m. :: Program Content

(includes 15 min mid-afternoon break)

Comparing and Contrasting PPAs to Wholesale Market-Based Energy Sales

  • Market structures
  • Direct/physical PPAs
  • Virtual PPAs
  • Settlements
    • Day ahead example
    • VPPA example

Risk Distinctions that Especially Apply to Virtual/Financial PPAs

  • Settlement location
  • Volumetric risk
  • Portfolio monitoring
  • Credit
  • Curtailment risk
    • Proxy generation
  • Production vs availability guarantees
  • Seasonal guarantees
  • Shaped or fixed-quantity guarantees
  • Proper accounting treatment

The Symbiosis Between Hedges and PPAs

  • VPPAs
  • Hedge vs PPA

4:30 p.m. :: Program Adjournment

Instructors

 

Steve Birndorf, Director – Renewable Energy Consulting, NextEra Energy. 

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. 


David Millar, Director of Energy Analytics, Ascend Analytics

David Millar is Director of Energy Analytics at Ascend Analytics. He leads Ascend’s consulting practice, providing utility clients with expertise in risk-based long-term resource planning and valuation. Previously, David worked at Pacific Gas and Electric, where he served as a Principal of Energy Modeling and Analysis. David led data analytics projects to guide company strategy on generation portfolio planning, energy storage valuation, and load and price forecasting. David previously worked in energy consulting with DNV GL and regulatory policy research at Lawrence Berkeley National Lab. He holds a master’s degree in Energy Economics and Policy from Duke University, and bachelor’s degrees in Earth Sciences and Political Science from the University of California, Santa Cruz.


Dr. Brent Nelson, Manager – Forecasting & Market Fundamentals, Ascend Analytics

Dr. Brent Nelson is a senior energy analyst at Ascend Analytics, providing utility clients with expertise in demand management, resource planning, and renewable integration. Prior to joining the company, he was an Associate Professor of Mechanical Engineering at Northern Arizona University, while also holding a collaborative appointment with the directorate of Scientific Computing and Energy Analysis at the National Renewable Energy Laboratory. Dr. Nelson also worked for the US Department of Energy from 2014-2016, focusing on technology research and development programs for energy efficiency and demand side management. He has extensive experience in energy technology and energy system modeling, with a focus on understanding the impacts of future shifts in technology adoption. Dr. Nelson has also consulted for several companies and universities on their energy and sustainability initiatives. In addition to 11 years of experience as an academician with a research focus in energy analysis, he holds PhD and MS degrees in mechanical engineering from Georgia Institute of Technology, and a bachelor‘s degrees in mechanical engineering from the University of California, Berkeley.


Supria Ranade, Senior Director of Power Marketing and Wholesale Operations, Lightsource BP

Supria Ranade is Senior Director of 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).

Online Delivery

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.

Register

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

Event Standard RateAttendees
Single Connection - Valuation of PPAsUS $ 1195.00
Pack of 5 connectionsUS $ 4,780.00
Pack of 10 ConnectionsUS $ 8,365.00
Pack of 20 ConnectionsUS $ 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 license packs

This event has the following related events:

Renewable PPAsUS $ 1195.00
Pack of 5 connectionsUS $ 4,780.00
Pack of 10 ConnectionsUS $ 8,365.00
Pack of 20 ConnectionsUS $ 14,340.00

By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

Take advantage of these discounts!

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

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 September 11, 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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