Corporate PPAs
The global renewable electricity generation capacity is growing with an unprecedented speed. Half of the growth in the power production across the globe is coming from renewables, led by wind, solar PV, and hydropower. Within the next 5 years the share of renewable technologies meeting global energy demand will reach 30% of the total world electricity generation.
There are many companies that have a commitment to become 100% green. Corporate Power Purchase Agreement (CPPA) would be the instrument to source the renewable energy that would help to reach these goals. The Corporate PPA market offers an avenue to hedge wholesale price risk and secure long-term revenue visibility and price certainty. The CPPA market already took off in the US and Europe and is spreading across the globe. So there are valuable lessons to be learned. Kasper Walet can share his unprecedented academic and practical expertise.
In the form of best practice services:
• (Second Opinion) assessment existing PPAs
• PPA Risk Assessment
• Advise on PPA pricing and volume structures
• PPA Contract negotiations support
• PPA Contract legal drafting
• Country Analysis
• Education
The Client: A European Utility and energy services provider
Users: The electricity sourcing team
The Problem: The Utility as an offtaker signed a Head of Terms (“HoT”) with a seller for a PPA. The HoT was the basis for the seller to draw up a Draft PPA contract and send this to utility for review and further negotiations. After that the seller send an updated version of the PPA.
The Utility was looking for a “second opinion” on the updated PPA, including any recommendations about how to best structure the provisions of the Final PPA to best reflect and protect the position and interest of the Utility.
The solution: Kasper Walet as the expert did a review of the latest version of the Draft PPA and wrote down the results and recommendations in a report.
The outcome of the review, including the recommendations, were being discussed with the relevant people within the Utility during a workshop-style meeting.
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