Power Purchase Contract - October 2025
A comprehensive course on Power Purchase Agreements (PPAs) for various renewable energy projects is proving to be a valuable resource for businesses and energy authorities alike. The training, spanning over five sessions and 15 modules, offers participants an in-depth understanding of the key components and aspects involved in PPA negotiations.
Defining PPAs and Their Purpose
At the heart of the course lies an introduction to Power Markets and Power Purchase Agreements. Participants learn about the contractual agreements between renewable energy generators and buyers, which can be for the purchase of electricity or renewable energy credits over a defined period. The course differentiates between physical PPAs, where actual electricity delivery takes place, and financial or virtual PPAs, where power is sold to the grid, and buyers settle prices financially.
Types of PPAs and Their Elements
The training covers various types of PPAs, including on-site, off-site, and corporate agreements. Each type is explored in detail, outlining the key contractual elements such as contract length, pricing, volume, renewable energy certificates, design, construction, and operations responsibility, termination and exit clauses, and project and asset location.
Risk Management, Settlement Mechanisms, and Legal Context
Understanding risks associated with PPAs, such as volume risk, imbalance risk, and settlement mechanisms, is a crucial part of the course. Participants learn how these risks are managed through utility PPAs or market arrangements and gain insights into the legal and regulatory context of PPAs.
Applications Across Renewable Energy Types
The course delves into the applications of PPAs across various renewable energy types, including solar, wind, energy storage, and hybrid projects. It highlights the nuances in contracts depending on technology and market environment.
Genesis Energy, Building Energy, and the National Energy Authority have all found the course to be excellent, super informative, and well-organised. The training broadens participants' comprehension of essential clauses within a PPA, providing them with the tools needed to structure, negotiate, and manage PPAs for renewable energy projects effectively.
The course is designed to equip participants with the knowledge required to operate in regions with sophisticated power exchanges and markets, as well as in developing countries with a single buyer and a centralized monopoly power utility. It examines specific components of the agreements, focusing on those most commonly the subject of negotiation between power producers and power customers.
Sessions 1, 2, 3, 4, and 5 cover the fundamentals of power purchasing, power project development, prices, tariffs, quantities, escalation, and payment, force majeure, damages, termination, disputes, environmental credits, virtual PPAs, financing, management, and strategies in negotiating PPAs, respectively.
From understanding the legal, commercial, technical, and operational features critical to structuring, negotiating, and managing PPAs, to learning strategies in negotiating PPAs, this course offers a comprehensive and valuable learning experience for anyone involved in the renewable energy sector.
- The course on Power Purchase Agreements (PPAs) delves into the applications of PPAs across various renewable energy types, such as solar, wind, energy storage, and hybrid projects, highlighting the nuances in contracts depending on technology and market environment.
- Participants learn about the financing aspects related to PPAs in the course, which covers topics like virtual PPAs and the financial management of renewable energy projects.
