Workshop Power Purchase Agreements (PPA)
Half-day interactive workshop where the DNV Energy Markets team provides insight into future electricity markets and evolution of (corporate) PPAs for renewable projects.
The course builds a heuristic view on the role of PPAs in the future energy system, where uptake of renewables will highly increase risk exposure of direct market parties and other stakeholders whose business may be affected by the dynamics of electricity prices. One of the most robust and commonly acknowledged hedging solutions is a Power Purchase Agreement.
The first part of the workshop consists of a brief introduction into the topic, including explanation of what are the possible contract delivery approaches, pricing models and volume structures. Further, a high-level overview of all intrinsic risks, relevant for corporate off-takers, developers and lenders is presented. In the second interactive part, our team is ready to elaborate at a deeper level on what are the specific needs of a concrete client who wants to reduce its exposure to electricity market volatility. Various pricing structures will be compared, implying different level of market exposure. A reference can be made to DNV's "Market Risk Assessment Tool" which quantifies future market risks and allows for a better pricing approach.
Outcome
As an outcome of the course, companies to whom electricity markets are relevant will gain a better picture of the future developments and risks. A special attention is dedicated to (dynamic) price risks. This is the main aspect to be assessed by a party who is procuring energy directly or financing renewable energy developers. Quantified examples of projected revenues are given for a typical RES asset so that the client gets a hands-on feeling of how certain market risks may impact the business case.
Target group
- Lenders
- Finance institutions
- Corporate buyers
- Renewable developers
- Investors in RE projects
The course focuses on the European system as such, but quantified examples and market overview can be given on a country basis.
The course is available on request. Content, location and duration of the course can be adapted to your specific needs. For more information, please contact us.
The course builds a heuristic view on the role of PPAs in the future energy system, where uptake of renewables will highly increase risk exposure of direct market parties and other stakeholders whose business may be affected by the dynamics of electricity prices. One of the most robust and commonly acknowledged hedging solutions is a Power Purchase Agreement.
The first part of the workshop consists of a brief introduction into the topic, including explanation of what are the possible contract delivery approaches, pricing models and volume structures. Further, a high-level overview of all intrinsic risks, relevant for corporate off-takers, developers and lenders is presented. In the second interactive part, our team is ready to elaborate at a deeper level on what are the specific needs of a concrete client who wants to reduce its exposure to electricity market volatility. Various pricing structures will be compared, implying different level of market exposure. A reference can be made to DNV's "Market Risk Assessment Tool" which quantifies future market risks and allows for a better pricing approach.
Outcome
As an outcome of the course, companies to whom electricity markets are relevant will gain a better picture of the future developments and risks. A special attention is dedicated to (dynamic) price risks. This is the main aspect to be assessed by a party who is procuring energy directly or financing renewable energy developers. Quantified examples of projected revenues are given for a typical RES asset so that the client gets a hands-on feeling of how certain market risks may impact the business case.
Target group
- Lenders
- Finance institutions
- Corporate buyers
- Renewable developers
- Investors in RE projects
The course focuses on the European system as such, but quantified examples and market overview can be given on a country basis.
The course is available on request. Content, location and duration of the course can be adapted to your specific needs. For more information, please contact us.
