What is Covered in this Advanced Program?
To encourage the generation of Electric Power in the private sector the government encourages the setting up of All Types of Power Plants – the investor business is called an IPP, or Independent Power Producer, and the Contract Entered to Buy the Power from producer is called the Power Purchase Agreement PPA. This program will build competencies in Understanding, Negotiating and Administering PPAs.
The Government or Private customer is the Electrical Utility or bulk consumer, in PPA they agrees to buy Electric Power from the IPP for a predetermined period of time usually 20 or 30 years at agreed formula rates to enable the Investor recover his investments.
If the Land or other Resources like fuel is provided by the Government Owner, Power Utility, it becomes a PPP Contract. If the Fuel is provided to the Contractor or Investor Business it may be called an Energy Conversion Agreement, instead of the PPA..
Sometimes Power Purchase payments may be guaranteed by the Government to reduce risk for Foreign Independent Power Producers IPPs and Guarantee Demand for the Power. PPAs are also made to encourage and incentivize Renewable Energy Power IPPs in the Private Sector..
Pricing of Power Produced could be based on Competitive Tendering before projects are setup to select the IPP offering Power at the lowest rates.
If the Power Projects are not economically viable the Government may Incentives and Grants, these are called filling the Commercial Viability Gap. Government may appoint Regulators to streamline this Power Generation and Selling business model. The regulator ensures Fair Competition and Preventive Monopolistic Practices. This program covers all these versions of the PPAs.