Contract Management for Renewable Energy #258007

Upon successful completion of this course, participants will be able to:

• Identify and explain the purpose and key clauses of the core contracts in a renewable energy project finance structure.

• Analyze the critical interfaces and risk allocation between different project agreements (e.g., how PPA terms affect EPC contract requirements).

• Evaluate key contractual risks related to performance, timing, weather, and regulatory change.

• Develop strategies for the effective negotiation of pivotal contract terms.

• Manage common post-signing contract events, including variations, delay claims, and performance shortfalls.

• Understand the dispute resolution mechanisms common in renewable energy contracts and how to avoid them.

This course is designed for professionals involved in the development, execution, and management of renewable energy projects:

• Project Developers and Project Managers

• Contract Managers and Administrators

• Legal Counsel and In-House Lawyers for energy companies

• Finance and Investment Professionals (banks, equity investors)

• Engineers and Technical Advisors moving into commercial roles

• Insurance Advisors and Risk Managers

• Procurement Professionals in the energy sector

• Pre-assessment
• Live group instruction
• Use of real-world examples, case studies and exercises
• Interactive participation and discussion
• Power point presentation, LCD and flip chart
• Group activities and tests
• Each participant receives a binder containing a copy of the presentation
• slides and handouts
• Post-assessment

Day 1: The Renewable Project Ecosystem & Core Contractual Structure

• Morning Session: Introduction to Renewable Project Finance

  • The Project Finance Model: Key parties, SPV structure, and the concept of bankability.

  • Overview of the Core Contract Suite: The web of agreements that underpin a project.

• Afternoon Session: The Power Purchase Agreement (PPA) I

  • Types of PPAs: Utility-scale, Corporate (CPPA), and Merchant exposure.

  • Key PPA Concepts: Term, Capacity, Metering, Delivery Point, and Curtailment rights.

  • Workshop: Analyze a PPA term sheet and identify key developer vs. off-taker risks.

Day 2: Construction and Equipment Contracts

• Morning Session: The Engineering, Procurement & Construction (EPC) Contract

  • Lump-Sum Turnkey vs. Cost-Reimbursable: Risk allocation and choice.

  • Critical Clauses: Scope, Price, Schedule, Performance Guarantees (LDs), and Delay Damages.

• Afternoon Session: Equipment Supply Agreements

  • Turbine & PV Module Supply Agreements: Warranties, availability guarantees, and long-term service agreements (LTSA).

  • Technology & Performance Risk: How contracts manage evolving technology.

  • Case Study: Review a performance guarantee clause and calculate potential liquidated damages for underperformance.

Day 3: Risk Allocation and Key Commercial Terms

• Morning Session: Managing Development and Permitting Risk

  • Land Lease and Access Agreements: Key terms and long-term considerations.

  • Connection Agreements (Grid Code Compliance): Interfacing with the transmission operator.

• Afternoon Session: Commercial and Regulatory Risks

  • Force Majeure in Renewables: How is it different? (e.g., “Resource Force Majeure”).

  • Change in Law Clauses: Protecting against adverse regulatory shifts.

  • Negotiation Simulation: Role-play a negotiation on a Force Majeure clause between a developer and an EPC contractor.

Day 4: Operations, Management, and Disputes

• Morning Session: Operations and Maintenance (O&M) Agreements

  • Key Performance Indicators (KPIs) in O&M: Availability, MTTR, MTBF.

  • Payment Structures: Fixed fee, variable fee, and performance-based.

• Afternoon Session: Contract Management & Dispute Avoidance

  • Post-Signing Management: Variations, change orders, and claims management.

  • Dispute Resolution Mechanisms: Negotiation, mediation, expert determination, and arbitration.

  • Workshop: Manage a claim scenario for a delay caused by unforeseen site conditions.

Day 5: Financial Contracts and Capstone

• Morning Session: Interfacing with Financial Agreements

  • How Lenders View Contracts: Conditions precedent, covenants, and security packages.

  • The Direct Agreement: Giving lenders step-in rights to protect their investment.

• Afternoon Session: Capstone Case Study

  • Final Exercise: Teams are given a project scenario with a problem (e.g., underperformance, delay, regulatory change). They must:

    1. Identify the relevant contracts.

    2. Analyze the contractual rights and obligations.

    3. Develop a strategy for resolution.

    4. Present their findings and strategy.

  • Course Recap: Best Practices in Renewable Energy Contract Management.

  • Final Q&A and Certification.