The course is aimed at professionals who wish to gain an understanding of or update their knowledge regarding Power Purchase Agreements (PPAs) and the new types of contracts relating to battery storage and flexibility, such as Flexibility Purchase Agreements (FPAs).

 It is of relevance not only to people who are new to these agreements but also to those who want to keep up with the most recent developments in PPA and BESS contracting.

Power purchase agreements are still playing a significant role in the financing and commercialisation of renewable power projects, but the forms of these PPAs are changing. Because of increasing renewable penetration, negative prices, price cannibalisation and greater exposure to profile and imbalance risks, the needs of generators, offtakers and financing parties are being altered. New types of structures, such as Solar plus BESS PPAs, structured and hybrid products and 24/7 Carbon-Free Energy procurement, are now increasingly combining renewable generation with storage and flexibility in order to produce more predictable and valuable power profiles.

Meanwhile, the rapid advancement of Battery Energy Storage Systems (BESS) is leading to the emergence of new contractual and commercial arrangements. The value of a battery can be derived from a number of different markets and sources of income, such as day-ahead and intraday optimisation, balancing and ancillary services. Flexibility Purchase Agreements, tolling arrangements, optimisation agreements and revenue-sharing structures may be employed in order to divide among the asset owners, offtakers and optimisers the rights regarding dispatch and optimisation, the revenues and the risks.

The course looks at these developments from a commercial and economic point of view as well as from the standpoint of contracts. The participants will study the way traditional PPA arrangements are changing, how renewable generation and BESS can be combined in a contractual manner, and how new flexibility agreements deal with revenue stacking, merchant exposure and operational control. Special attention is paid to pricing and revenue arrangements, bankability, dispatch rights and the distribution of market, credit and operational risks.

 

Programme

PPA structures & new developments

• Role of PPAs in project financing and bankability

• Physical, financial and corporate PPA structures

• New pricing and offtake structures

• Negative prices, cannibalisation, profile and imbalance risk

• Changing approaches to risk allocation and merchant exposure

Solar + BESS & next-generation PPAs

• Solar + BESS and hybrid PPA structures

• Firming and shaping renewable generation with storage

• Charging, dispatch and optimisation rights

• Allocation of storage revenues and merchant upside

• Impact on pricing, risk allocation and bankability

24/7 CFE & emerging procurement models

• 24/7 Carbon-Free Energy and granular matching

• From annual renewable procurement to hourly matching

• Role of PPAs, storage and flexibility

• Guarantees of Origin and granular energy attributes

• Commercial implications for generators and offtakers

BESS, flexibility & FPA structures

• BESS revenue stacking: day-ahead, intraday, balancing and ancillary services

• Flexibility Purchase Agreements, tolling and optimisation structures

• Fixed, floor and revenue-sharing models

• Dispatch and optimisation rights

• Merchant exposure, performance and battery degradation

Contracting & risk allocation – PPA versus FPA

• Revenue certainty versus merchant upside

• Price, volume, profile, availability and operational risks

• Credit support and bankability

• Key negotiation considerations

• PPA versus Solar + BESS PPA versus FPA/tolling structure

• Outlook for power and flexibility contracting