An Interactive 5-Day Training Course
Power Purchase Agreement from Commercial and Legal Perspective
A Comprehensive Masterclass on PPA's
Course Overview
The Power Purchase Agreement (PPA) is complex component of an energy project and can be used to purchase any type of energy including both renewal and non-renewable. Negotiating a bankable Power Purchase Agreement is essential if a project is to take off.
A PPA must take into account present regulatory environment must also include provisions that will lock in price and quantity and manage risk factors as the agreement is normally for a 20-30 year period. Participant in this 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. This training course aims to give participants the tools to achieve this.
The participants 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.
This GLOMACS training course will highlight:
- The different project structures and models for a PPA
- The roles and responsibilities of the seller and buyer under a PPA
- The essential contractual clauses necessary
- Risk management strategies
- Guarantees and warranties
- Pricing, tariffs and take or pay obligations
- Contract compliance and penalties
- Avoiding common errors and mistakes in negotiating a PPA agreement
- Adopting risk management strategies and the allocation and limitation of liability between seller and buyers of energy
Training Outline
DAY 1: Power Purchase Agreement – Introduction & Main Features
- Introduction to 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) Purpose and Role
- Generator Covenants
- Assignments Rights
- Licences
- Metering, Measurement and Verification
- Indemnifications
- Purchaser Covenants
- Price and Payment
- Avoided Peak Demand Payments
- Liquidated Damages
DAY 2: 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, Novations
- Law & Jurisdiction
DAY 3: Risk Assessment in a Power Purchase Agreement
- 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 4: Commercial Aspects of a Power Purchase Agreement
- Price, Volume & Tariffs
- Metering
- Take or Pay Obligations
- Shape or Profile Risk
- Balancing Risk
- Credit Risk
- Tenor Risk
- Managing Lender Expectations
DAY 5: Negotiation of a Power Purchase Agreement & Dispute Resolutions in PPA
- 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
- Reach Sustainable Agreement
- Negotiation
- Negotiate on Key Milestones to be Achieved & Penalties for Failures
- Negotiate Performance Guarantees
- Dispute Resolution
- Different Types of Dispute Resolution
- Litigation
- Mediation
- Arbitration
- Expert Determination
Certificates
- On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
- Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Accreditation
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
Providers and Associations
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
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