Your Commodities Risk Management Partner

Benefit from 20+ years of experience in the commodity industry!

Maycroft News

New in our Commodity Intelligence Series: Essentials of Power Purchase Agreements

Published on 08/04/2014
News >>

The last couple of years we have successfully conducted several (educational) projects regarding Power Purchase Agreements(PPA's) for energy companies, regulators, financirs and investors from many emerging countries across Asia and Africa. That made us realize that there is a huge need for information about PPA's for IPP projects. That is the exact reason why we have published this report about the Essentials of Power Purchase Agreements as part of our Commodity Intelligent Series.

In this highly practical report a comprehensive analysis of issues associated with electric power projects, and the project financing in general and the Power Purchase Agreements (PPA's) in particular, will be provided to you. The way in which power is sold (PPA, merchant, tolling, feed-in tariff with preferential despatch etc.) is arguably the most important determinant of project financing, and therefore these agreements are worthy of particular attention.

There will be a specific focus on Power Purchase Agreements. PPA's can be used by Independent Power Producers (IPP's) to either sell conventional power or renewable energy and thus being able to attract the necessary financing. Next to the features of power purchase agreements, we will explain the best practices of how risks in IPP projects could be assessed and allocated under a PPA. Special attention will be paid to how the tariffs could be structured under a PPA.

This is a highly practical and essential report for everyone who would like to understand how to make a thorough analysis of the IPP project proposals and the associated PPA's and being able to negotiate on equal terms with the international counterparts and their advisors.

If you are interested, feel free to take a look at the Summary and Order information.