Power Purchase Agreements

Course overview This 3-day course is designed to introduce both lawyers and nonlawyers alike to the understanding of how to arrange and manage Power Purchase Agreements (‘PPAs’) and how to set up dispute resolution processes. The emphasis of the conference will be to provide a practical understanding of the contracting process and PPA’s in general. This will include contract selection, terms of art when entering into a PPA, differentiating the interests of buyers and sellers, and contract preparation, together with a section on the effective management and resolution of disputes. This course is aimed at those who are interested in acquiring a detailed understanding of how to draft and negotiate PPAs, what the clauses and industry terms are for and how you can best use them together with the knowledge of the legal environment which facilitates such a process. This course is delivered by providing an overall view of the worldwide industry and specific examples of deals that have been completed. Course objectives By the end of the course, delegates will have: A firm, substantive and practical understanding of PPA contracts A firm understanding of how to deal with disputes related to PPA contracts Who should attend Attendance at this training is a must for senior management and in-house lawyers including contracts, operations, commercial directors, mangers and other senior personnel involved in the energy industry.
Day 1 What is a Power Purchase Agreement (PPA)? A PPA defines the commercial terms for the sale of energy between two parties Explanation of range of situations in which a PPA is used International examples of commercial deals using PPAs both short and long term Drafting a PPA: part I General interests of buyer versus seller Drafting the technical scope of work and construction milestones Pricing structures Timing Payment terms and credit arrangements Liquidated damages Damages for delays Programmes (time schedules) Force Majeure clauses Drafting a PPA: part II Curtailments Maintenance Risks related to changes in law Environmental risks Day 2 Effective contract management Understanding the rights, roles, responsibilities and obligations of the parties Ensuring the parties fulfil their obligations Record keeping and document control Management of change and speedy resolution of technical disputes Programme management Claims management Time bar and limitation- International examples of commercial deals using PPAs both short and long term Negotiation art or science? Principles of negotiation Understanding the needs of the buyer v. the seller How to avoid the usual pitfalls of negotiation Understanding and drafting to accommodate disputes arising in the early stages Technical dispute resolution clauses and appointment of arbitrators for technical issues Choice of venue Day 3 Understanding arbitration and how its used in PPAs What is arbitration and how does it apply to PPAs? Types of arbitration How it works How to use arbitration effectively The relationship between in-house and outside counsel: how to maintain, or ruin, the relationship Cost estimates, fee arrangements, and budgeting Establishing dispute resolution objectives – goal setting Practical training and case study Course summary and close