POWER PURCHASE AGREEMENTS

Transcription

1 Master the drafting requirements of POWER PURCHASE AGREEMENTS ADVANCING HIGH PERFORMERS DEVELOPING POWER EXECUTIVES PAN AFRICAN TRAINING FORUM FOCUSING ON ENHANCING PERFORMANCE BUSINESS FRIENDLY STRATEGIES PRACTICAL & INNOVATIVE LEARNING INTERNATIONAL & REGIONAL TRENDS August 2015 Johannesburg, South Africa

2 Welcome to the Power Purchase Agreement School The global trend of the electricity sector moving from government controlled monopoly services to liberalized market places creates a highly complex regulatory scene, where all technical, operational, regulatory, market interfacing and commercial requirements for long-term basis should be captured in the Power Purchase Agreement. There are different models for power purchase. The earlier models are evolving to cover diverging generation types and the increasing technical complexity required to operate and dispatch generation capacity of renewable and dispersed micro generation. Power Purchase Agreements can be done in many ways, subject to the priority of the requirements. Course Facilitator: John Harmer John Harmer began his career in the United Kingdom electricity industry immediately before its privatisation in His roles expanded from building and running financial models to negotiation of financial and commercial contracts associated with IPPs across the world, including those in Malaysia, Hungary, Morocco, Australia, New Zealand and the Netherlands, as well as the UK. After a short period in the Project Finance group of the investment bank Dresdner Kleinwort Benson, where he supported development and financing of projects in Thailand, India and Egypt, John moved to a mergers and acquisitions role within the power subsidiary of Vivendi, before it divested its energy business. John then worked within two power trading companies (Dynegy and EDF Trading) before becoming an independent consultant in He now assists business and project development through providing energy market and regulatory analysis of power (especially renewable) and gas markets, building and reviewing valuation models for energy assets, and assisting clients with negotiation of commercial contracts, supporting independent electricity and gas projects. This course has been specifically developed to guide you through the process of negotiating and drafting these complex. It will highlight different structures, content and financing. Review the key challenges faced in the context of current, provide you with robust understanding the commercial, financial and legal considerations. Pamela Largue Spintelligent Training Manager Benefits of attending: 1 2 Comment from a previous Spintelligent Training course: The course had highly useful group discussions, with a knowledgeable facilitator who possessed a wealth of information across many regions. Chidi Mike-Eneh, Credit Manager, Stanbic IBTC Bank Plc Understand the complexity of power purchase to assess the impact for your business Evaluate your current power purchase and position yourself to influence the stakeholders involved. 3 Broaden your knowledge of power purchase on a global scale to evaluate opportunities 4 Review to what extent the power purchase will be beneficial for various market conditions 5 Boost your practical knowledge through actual case studies taken from reallife scenarios 2 Book early and SAVE 10%:

3 Agenda DAY 1 OVERVIEW OF ELECTRICITY POWER PURCHASE AGREEMENTS TYPES The structure of the electricity supply industry variations of power purchase Evolution of the power purchase agreement Regulation of the power purchase agreement Variations of power purchase Power purchase and what the benefits are Practical session: Power purchase and associated electricity market regulation from four different countries Who should attend? All those involved in setting up power purchase. Participants include: Network operators Governments and regulators Renewable power suppliers Large power users Independent power producers Banks and financial institutions Consultants Market operators OVERVIEW OF ELECTRICITY POWER PURCHASE AGREEMENTS TYPES The power purchase agreement role and objectives of electricity network regulation The role and benefits of an independent economic regulator The regulator as a proxy for a competitive market Promotion of investment Allowing investors freedom to manage their own risks and returns Maximisation of economic efficiency Taking into account social considerations and government policies The power purchase agreement and the stakeholders Identification of the stakeholders for power purchase What should and should not be comprised in long-term power purchase? Subsidy schemes and the impact on power purchase Environmental regulation, economic outlook, government credit rating, taxation Feedstock delivery and responsibilities Supply guarantees and contractual commitments in power purchase Practical session: Power purchase stakeholder mapping Power purchase agreement types Base generation, renewable, dispatch able Subsidy impact on power purchase agreement Impact of co-generation deliveries from power generation source, district heating, desalination Capacity payments versus free market Spinning reserve Supply guarantees and contractual commitments in power purchase INCENTIVE BASED POWER PURCHASE AGREEMENTS Efficiency regulation How to encourage efficient operations CO2 regulations, politics, incentives Who should share benefits from improved efficiency The role of efficiency benchmarking Practical session: Efficiency based Power purchase agreement development identification 3

4 Agenda DAY 2 DETAILS OF ELECTRICITY NETWORK REGULATION Power purchase and forecasting robustness Forecasting demand short term, and non controlled power generation supply gap Capacity payment ratio versus power supply payments adapting fossil generation to reduced operation. Forecasting energy usage as a component of forecasting of revenue Forecasting demands for maintenance undertaking Forecasting capital and operational expenditure How to assess forecasts The power purchase agreement and financing Power purchase agreement for competitive bidding processes The relevance and importance of regulated cost of capital in electricity network regulation How to determine the cost of capital Benchmarking of operational costs Renewable guaranteed off take pricing Practical case study: Renewable impact on power generation market in Europe, how to not repeat Interfacing challenges for the establishment and services for a generator for the power purchase agreement Custody transfer complexities, independence of How to handle shared assets and interconnection Own consumption metering Regulation of prices vs. revenue Pricing of non-core services, additional regulation requirements IN-HOUSE TRAINING Want this programme in-house? All of our programmes can be tailored and developed to focus on the specific challenges your business faces. The programmes can be customised around your people, systems and operations. In this format you will benefit from the intensive, practical and challenging development programme that is unique to the Spintelligent Training Academy. A highly experienced facilitator will ensure skills gaps are directly addressed through the course material and will provide a forum for interactive group learning. WORKING IN PARTNERSHIP TO: Understand your training objectives Define your specific outcomes Map the content to your requirements Deliver practical and interactive training solutions that will embed the learning BENEFITS OF IN-HOUSE Tailored programmes focused on your business challenges Comprehensive Training Needs Analysis (TNA) Materials customised around your documentation, people and processes Blended solutions including online learning, one-on-one coaching and face-to-face training Run at a location of your choice High Return on Investment for a group of five or more participants Programmes from one day to one year plus Enquire today: training@spintelligent.com 4

5 About the Spintelligent Training Academy Skills and knowledge development are key to driving growth through increased innovation in all industries. Continuous training provides a return on investment for both the individual and the business. At Spintelligent Training Academy, we target the core areas that are vital to the success of a business operating within the energy sector. Experienced training instructors with a proven track record in the power and utilities industry deliver content that will empower individual high performers, teams, managers and executives. Our solutions are designed to produce tangible results through sustainable improvement and inject energy and innovation into performance. Pre-course Work Delegates will receive practical pre-course information to encourage understanding of course content and facilitatee the learning process. Questionnaires, case study materials and a preview of the training material will be included to orientate participants towards learning. Delivery Style You will experience dynamic, interesting and proactive sessions, case studies and discussions that will include innovative concepts and practices, useful practical examples of projects and cases from across each region. Clarion Training is focused on delivering practical and industry relevant training that will enhance your business and knowledge skills at a very real and tangible level. Post-course Each participant will be given a certifcate of attendance, CPD certified, on completion of the course. Booking price $2,300 - Full price $2,070 - Early booking price Group booking discounts: Group bookings of 2-4 participants receive a 10% discount Group bookings of 5+ participants can benefit from even better rates. Please contact us directly for further details: training@spintelligent.com Accommodation Participants are responsible for arranging their own accommodation. Where possible, Spintelligent Training Academy has special rates with certain hotels, please contact us for further information. Venue The course will take place at The Westin Hotel, Cape Town, South Africa. Participants will be provided with lunch and refreshments each day. Similar courses run by Spintelligent Training Academy Power Sector: Continuity Management & Disaster Recovery August 2015, Johannesburg, South Africa IPP Bidding Masterclass September 2015, Cape Town, South Africa Business Strategies for Renewable Energies 5 6 November 2015, Johannesburg, South Africa Full course calendar available at 5