Corporate & Virtual Power Purchase Agreements

Overview

In the global marketplace of 2020’s both developed and developing economies energy markets are rapidly transforming with both the expansion of competition-based energy markets and power exchanges (PXs), as well as the tremendous growth in renewable energy (RE) generation and the fiscal and financial incentives they entail, as well as the growth in markets Renewable Energy Credits (RECs) and the monetization of green energy environmental attributes, carbon emissions off-sets, and carbon credits. Taken together, these rapidly growing long-term changes in global energy markets have created important opportunities for private corporations, industries, and other investors in the energy markets to significantly reduce their risks through creating, negotiating, and even trading new Corporate and Virtual Power Purchase Agreements (C&V PPAs) for renewable energy (RE).

While C&V PPAs are similar to “traditional” PPA models, they have important differences and advantages that investors and energy market participants must understand. Under traditional PPAs, large, often vertically-integrated and state-owned off-takers, or regulated investor-owned utilities (IOUs) contract with private power developers for the design, financing, construction, and operation of brand-new renewable power facilities, and commit to buy all newly-generated power (or “deemed energy”) for the entire term of the plant’s operational life – usually 20-25 years. However, C&V PPAs allow much greater flexibility for corporations, industries, and energy market investors to hedge against future power price volatility and to lock-in important benefits, such as long-term RECs, through “Virtual” PPAs. Virtual PPA contracts, as derivative instruments, even enable corporate investors to purchase important Renewable Energy Credits (RECs) and Environmental Attribute Certificates (EACs) without requiring the direct physical generation, delivery, or consumption of renewable power. Such C&V PPAs models are becoming increasingly attractive to key investors and consumers of the growing RE global market, such as in data centers, logistics management, as well as industrial manufacturing, as well as the growing market of RE power developers, green energy investors, and producers of renewable solar, wind, hydroelectric, biomass, and geothermal power.

This interactive 5-session workshop will provide clear explanations of the new models of Corporate & Virtual PPA contract structures, risk allocation, and tradeability to ensure contract bankability, of allowing RE investors, suppliers, and consumers to compete in green energy markets and power pools. The practical models for C&V PPA credit enhancements will be demonstrated through a series of real case examples of C&V PPA contracts, renewable project finance transactions, and competitive energy markets. Case Studies will include real examples from the USA, the EU, and selected emerging market economies.

Why Attend

• Use best practices from international case studies of successful Corporate and Virtual PPAs for Renewable Energy and avoid practical common pitfalls
• Review and manage the legal design of Corporate PPAs for long-term renewable power based upon your own company’s energy demands, risk profile and corporate goals
• Models and strategies for valuing, monetizing, and trading Renewable Energy Credits (RECs) and Environment Attributes from Corporate and Virtual PPAs for green energy
• Lead strategies for the analysis and the regulation of new competitive energy markets to attract corporate & virtual renewable power purchase contracts
• Understand clear financial metrics for analyzing Corporate & Virtual PPA bankability for private investors, lenders, energy market makers, energy suppliers, and other key green energy market stakeholders
• The latest environmental, social & governance (ESG) impact mitigation standards and techniques to ensure sustainability in Corporate & Virtual PPAs
• Manage and oversee successful Corporate & Virtual PPA renewable power transactions

Testimonials

“A well delivered course and a trainer with deep experience. Particularly valuable sessions included the group work negotiating a PPA.”

- European Bank for Reconstruction and Development

“Excellent! There are many interesting topics which cover almost all relevant issues in electricity market, such as market reform and PPA negotiation. And the speaker is simply great.”

- Electricity Generating Authority of Thailand

“This training has increased my understanding about reviewing and analysing of renewable energy PPA. Very informative.”

- Department of Treasury

“Excellent workshop, business oriented and perfect for getting a global view of good practices.”

- Eneo Cameroon SA