Power Purchase Agreements for solar projects
Solar projects use Power Purchase Agreements (PPAs) to sale electricity to Discoms, as well as to private consumers as a part of the C&I PPAs. PPAs are drafted to meet the specific requirements of a client and have significant impact on the project viability. In this course of four modules the participants will be able to understand the basic concepts of electricity sale and purchase arrangements. The course will also examine different payment security mechanisms associated with the PPAs. The course is boult based on our own experience and the participants will be able to understand the PPA negotiating strategies through attending this course. This course teahces the participants on the various clauses applicable in the PPAs to develop a secure solar project.
The course start with an introduction to the basic principles of electricity sales and purchase, and then continue with PPAs in the context of solar project development, The course will also deminstrate the PPA drafting with some of the critical terms such as force measure, termination, dispute resolution etc. The course will be built on case studies related to solar PPAs for C&Ias well as Discom PPAs.
- Introduction to the electricity trading and Power Purchasing
- Project contracts, project structures and PPAs
- Overview of various PPA terms
- PPA risks, and disputes
- Project financing and role of PPAs
- Case study of a C&I PPA
- Case study of a Discom PPA
- PPA negotiation and contract management
- Payment security and other risk mitigation strategies
What you will learn : -
Introduction to electricity trading and market structure
Overview of electricity market, role of different entities, power purchaseing and electricity trading through PPAs
Understanding the PPA termsheet
Contract price, quantitiy and delivery, outages, deemed generation, tenure, payment security etc.
Case studies of Solar PPAs
Case study of a solar PPA with C&I consumer, PPA with Discom,
Understanding the PPA risks & PPA negotiation strategies
Risks associated with deemed generation, take or pay contract, payment security issues, etc.
