Power Purchase Agreement from Commercial and Legal Perspective

A Comprehensive Masterclass on PPA’s

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5 Found
Date Duration Venue Fees
23-27 Sep 2024 5 Days Dubai - UAE US$4,450 Register
16-20 Dec 2024 5 Days Dubai - UAE US$4,450 Register

Course Overview

The Power Purchase Agreement (PPA) is a complex component of an energy project and can be used to purchase any energy, including both renewable and non-renewable. Negotiating a bankable Power Purchase Agreement is essential if a project is to take off. A PPA must consider the present regulatory environment and include provisions that will lock in price and quantity and manage risk factors as the agreement is generally for a 20–30 year period. The participant of this training course will be given a road map of how to navigate through a PPA and have an in-depth knowledge of the essential clauses.

This Power Purchase Agreement from Commercial and Legal Perspective training course will draw on a wide range of Power Purchase Agreements and case studies to elaborate on contractual, commercial and risk management issues that will invariably need to be addressed in a PPA. The success of an energy project will depend largely on how well a PPA is negotiated and executed, and it aims to give the participants the tools to achieve this. It will experience an interactive training course involving discussion of several case studies from around the world, reading of model Power Purchase Agreements and participating in a mock negotiation of a PPA.

Course Objectives

After the training course, the participants will learn to:

  • Analyse the structure of the document and the terms of a Power Purchase Agreement
  • Understand the commercial and legal issues relating to the negotiation and execution of a PPA
  • Know the different types of Power Purchase Agreements used for implementing power projects
  • Apply effective strategies for negotiation, execution, and implementation of a PPA
  • Understand the various considerations in adopting risk management measures and the allocation and limitation of liability between Sellers and Buyers of energy
  • Acquire knowledge of how to negotiate an effective Power Purchase Agreement encompassing all the critical issues faced upon instances of delayed scheduled, cost overruns, substandard quality, pricing volatility, and many more real-life problem scenarios

Target Audience

This training course is suitable for a wide range of working professionals, including (but not limited to) the following:

  • Consultants
  • Contract Managers
  • Commercial Managers
  • Finance Management
  • Senior Management
  • Accountants
  • Business Analysts
  • Business Development and Marketing Managers
  • Corporate and Project Financing Personnel
  • Economists
  • Engineers
  • External Legal Counsel
  • In-house Legal Counsel

Training Methodology

The participants attending this training course will receive a thorough knowledge and understanding using various proven adult learning teaching and facilitation techniques, including a lecture format and a handbook, case studies and practical problem-solving sessions and interactive discussions.

Course Outline

Day One

Introduction to Power Purchase Agreement

  • Introduction to the Energy Industry and the Role of the Power Purchase Agreement
  • Profile of the Project – Parties
  • Different Project Structures & Business Models: Lease, License, Concession, BOT, BOO, BOOT
  • Special Purchase Vehicle (SPV)
  • Generator Covenants
  • Assignments Rights
  • Licences
  • Metering, Measurement and Verification
  • Indemnifications
  • Purchaser Covenants
  • Price and Payment
  • Avoided Peak Demand Payments
  • Liquidated Damages
Day Two

Essential Clauses in a Power Purchase Agreement

  • Term and Extension
  • Performance Guarantees
  • SPV’s Construction & Development Obligations
  • Contracted Capacity & Energy
  • Representations & Warranties
  • Insurances Required
  • Maintenance and Scheduled Outages
  • Commissioning and Commercial Operations Commencement
  • Early Termination Rights & Events of Default
  • Off-taker Step-in Rights
  • Force Majeure Provisions
  • Disclaimers and Limitations of Liability & Indemnification
  • Subsidies
  • Change in Law
  • Transfer of Ownership Rights, Assignments, and Novations
  • Law & Jurisdiction
Day Three

Power Purchase Agreement – Risk Management

  • Liquidated Damages: Delay and Performance
  • Performance Bonds
  • Retentions
  • Variation Orders and Cost Overruns
  • Dealing with Political Risk
  • Dealing with Currency Exposures
  • Minimum & Maximum Delivery Obligations
  • Buyer Default
  • Seller Default
  • Sovereign Risk
  • Change in Tax Law
Day Four

Power Purchase Agreement – Commercial Aspects

  • Price, Volume & Tariffs
  • Metering
  • Take or Pay Obligations
  • Shape or Profile Risk
  • Balancing Risk
  • Credit Risk
  • Tenor Risk
  • Managing Lender Expectations
Day Five

Negotiation of a Power Purchase Agreement & Dispute Resolutions

  • Negotiate the Best Power Purchase Agreement
  • Prepare a Term Sheet
  • Set Framework for Negotiations
  • Balance Buyer’s and Seller’s Needs
  • Know your BATNA
  • Focus on Interests, not Positions
  • Sustainable Agreement
  • Negotiate on Key Milestones to be Achieved & Penalties for Failures
  • Negotiate Performance Guarantees
  • Dispute Resolution: Litigation, Mediation, Arbitration, and Expert Determination


Upon successful completion of this training course, Newage Certificate will be awarded to the delegates.

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