Power Purchase Agreements

Power Purchase Agreements

According to the IEA “More than 70% of the $2 trillion required each year in energy supply investment either comes from state-directed entities or receives a full or partial revenue guarantee.” This revenue guarantee is typically offered as a Power Purchase Agreement in the electricity sector and therefore a crucial element in a project finance environment for IPPs.

Bankability of PPAs is especially challenging as most electricity demand growth takes place in emerging countries with offtaker’s creditworthiness at least questionable. Therefore the bankability of PPAs is not only driven by complex contractual clauses within the commercial agreement but by the power sector and country context embedding the foreign invested IPP. More often than not, the project set up requires additional credit enhancements instruments backing the PPA to reach financial close.

Euromoney Learning's Power Purchase Agreements workshop draws on a database of some 100 PPAs from across the world and all types of power generation technologies to enrich your understanding and teach you new skills. We will further discuss a wide range of country and project case studies from Emerging Markets and compare them with international experience in the power sector.