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Understanding Power Purchase Agreements Power Africa

This comprehensive 4-day workshop gives you clear explanations on new models for EDA risk allocation, design and management of competitive electricity markets, attracting private investment in renewable energy through a series of examples of real contract and market cases. Case Studies will contain real-life examples from Asia, the Middle East, Australia, Africa, Europe and North America. In addition, the cases encourage independent reflection and discussion among participants. In the energy sector, there is a particular urgency to conclude balanced and clear contracts, under which agreements can cover decades of projects involving several developers, financiers and buyers. As part of Power Africa`s focus on streamlining negotiations on energy projects, U.S. government officials and our key private sector partners have recognized the need to create a common understanding of the key elements of balanced project contracts. Power Africa focused on the main project contract, the Power Purchase Agreement (ECA), and began gathering information from all sides of the negotiation process in order to reach a consensus on what a balanced and banking agreement is. A rapid design method called „Book Sprint“ allowed the group of experts to write and publish in just five days a manual entitled „Understanding Power Purchase Agreements“. The intensity of the design process reflects, in many ways, the balanced approach required for successful ECA negotiations, and the end result was a manual that gives the reader a complete understanding of these complex contracts. Significant investments are underway in the development of electricity generation, transmission and distribution infrastructure throughout West Africa. However, several countries are expected to have excess generation capacity, while others are likely to continue to suffer from electricity deficits.

In this context, the potential benefits of cross-border electricity trade are enormous, both in terms of increased availability and low-cost value chains for electricity generation and consumption. . . .

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