Course description
Electricity Economics, Merchant Power and Corporate PPA's
"The instructor was extremely knowledgeable and went out of his way to answer questions with examples" Saudi Aramco
This intensive, hands-on course, Financing Independent Power Projects (IPPs), provides a comprehensive analysis of the issues associated with independent electric power projects ranging from economic analysis of PPA contracts to financial modelling of projects.
In the analysis of various projects and case studies, a mixture of case studies, lectures and analytical exercise will be used to evaluate electricity price forecasts, debt structuring, technology choice, cost of capital, and architecture of financial models.
Upcoming start dates
Who should attend?
How will this course assist you?
Understand the objectives, theory, public policy and nuances of risk allocation between investor and off-taker for availability, heat rate, commissioning delay, operating costs, fuel prices, construction expenditures and capacity factor
Learn the importance of debt structuring in measuring project risk and measuring project value and the effect of different financing structures on PPA bidding strategies through computing required PPA prices in financial models to meet IRR and DSCR targets
Create flexible and transparent financial models of independent power projects from A-Z that incorporate availability risk; heat rate risk, operating cost risks, financing structure, tax treatments, alternative pricing policies and other factors
Prepare economic analysis that evaluates trade-offs between penalty provisions and PPA costs such as increasing availability penalty relative to required operation and maintenance costs as well as evaluation of PPA tariffs relative to the long-run marginal cost of electricity
Measure and evaluate changes in the risk of projects over different stages of the project and how equity returns and asset value change if purchases and sales occur at different phases of a project's life
Learn practical tools to analyse details of power projects including efficient tools to work with supply and demand data; creating flexible scenario and sensitivity analysis to evaluate efficiency and availability risk, construction risk, O&M risk and debt structuring; developing techniques to resolve circular references related to funding debt and sculpting debt without copy and paste macros
Work through implementation of risk allocation in PPA tariff design and evaluation of off-taker risk and off-taker financial analysis
Training content
Day 1
- Risk Allocation and Economic Analysis of PPA Contracts
- Risk Allocation and PPA Contracts
- Measurement of PPA Provisions and Electricity Economics
- Currency Risk and Interest Rate Risk in IPP's
- Policy Arguments For and Against IPP's
- Case Study of IPP's in the Philippines and India
Day 2
- Project Finance Terms and IPP Transaction Structure
- Theory and Structure of Project Finance in Context of IPP's
- Operating Analysis in Project Finance Model with PPA Contract
Day 3
- Debt Structure of IPP with and without PPA Contract
- Nuances in Structuring Debt and Modelling Projects
Day 4
- Off-taker Perspective in Model and Calculation of Tariffs
- Economic Analysis of PPA Prices Relative to Merchant Prices
- Non-Price Provisions in PPA Agreements
- Documents and Finance Sources
Costs
Course fee
- London - £4495 + VAT
- Chicago - £4495 + VAT
Why choose Euromoney Learning?
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60,000 professionals trained across public courses
80+ countries where training is delivered
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Euromoney Learning
At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...