Executive Advanced Master Classes

Content

Course outline

Setting the scene

• Underdeveloped infrastructure
• Lack of electricity access
• High cost of power
• Subsidised pricing
• Financing needs

Overview of electricity markets and power plant structures

• Electricity supply chain
• Regulatory and ownership models
• Power project life cycle
• Power plant stakeholders
• Legal structure of power plants

Power plant risks

• Market, fuel, political and currency risks
• Completion, technical, environmental and operational risks
• Financing and other risks
• What makes a good IPP
• Country risk comparisons

Project contracts

• Types of contract
• EPC turnkey contracts
• 10 features of a bankable Power Purchase Agreement
• Implementation Agreements
• Direct Agreements

Project funding sources

• Project versus corporate finance
• Financing models for different sizes and types of project
• Project owners - developers, development financing institutions (DFIs), financial and strategic investors
• Project lenders - local banks, foreign banks, DFIs
• Overview of DFIs
• Overview of export credit agencies and ECA-covered loans
• Project bonds

Guarantees, insurance and other credit enhancement tools

• Political and commercial risk
• Risk and credit guarantees
• Sovereign guarantees and letters of comfort
• Partial Risk Guarantees
• ECA guarantees
• Political Risk Insurance
• Letters of Credit and Escrow Accounts

Decentralised generation

• What is decentralised generation?
• Growth and types of decentralised power
• Mini and micro grids
• Critical success factors
• Business and funding models
• Future trends

Rental power plant

• What is rental power?
• Types of rental power
• Power ships and power barges
• Business and funding models
• Future trends

Early stage development

• Role of developer
• Development milestones
• Risks for early stage development
• Funding models for developers

Case studies

• Thermal power project
• Renewable power project
• Micro grid

Learning outcomes

On completion of the course, you will have a basic understanding of:

• The investment climate for power plants in developing countries
• The structure and ownership of electricity markets in these countries
• Who are the primary stakeholders in a power plant and how are projects typically structured
• The main project risks and how to mitigate them
• The key project contracts and what do you need to look out for
• Who is funding these projects and what are their requirements
• How funding models vary according to plant size, power technology and stage in the project life cycle
• The pros and cons of working with development financing institutions and export credit agencies
• What guarantees and insurance are used to de-risk projects and make them bankable
• Future trends in the market, including decentralised and rental power

Who should attend?

Anyone wishing to gain an understanding of the challenges of developing power plants in emerging markets.

Professionals working in the power and renewable markets, including project developers, utilities, regulators, EPC contractors, equipment suppliers and professional service providers.

Those financing power plants including private equity firms, development financing institutions, commercial banks, fund managers, venture capitalists, impact investors, institutional investors, family offices and foundations.