PPA Advanced: Managing Market Risks for Wind and Solar
Seminar details
How can I assess and manage the risk of an increasing PPA portfolio?
The era of Power Purchase Agreements (PPAs) for wind and solar has begun. You have collected a fair bit of experience with PPAs but further questions have come up: How can I evaluate market risks? How do future power market developments in Europe affect my risk exposure? Which contract structures are exposed to which risks? Are there significant differences between markets? How can I best manage this with increasing PPA volumes in my portfolio?
Date: 16 & 17 July 2024, 9:00 am to 12:30 pm
Registration deadline via Montel Website: 25 July 2024, 10:00 am
Price: 1050,– EUR p. P. plus GST, incl. seminar material (digital)
15 % Early bird discount until July 8th, 2024
Place: Live online training via Microsoft Teams (System requierements)
Please note: Participation in our training courses and workshops is only possible as employee of a company. Private individuals are excluded from participation.
- Specialists and managers from project developers, operators of renewable energy plants, energy suppliers, aggregators, traders, or industry
- Employees of the energy industry from the areas of energy trading, sales, purchasing, procurement, portfolio and risk management
You are a professional in the energy industry and have frequently dealt with PPAs and their risks. Due to increasing volumes, risk measurement and management are becoming more and more important for you.
As a plant operator, financier, energy supplier or industrial bulk consumer, you want to gain an in-depth understanding which market risks your PPAs entail and particularly how they can be managed, e. g. by hedging or diversification of geographies and technologies. You would like to go beyond an analysis of historical data and have some insight into fundamental risk modelling, taking into account future power market developments across Europe.
After this training you will be able to:
- Describe market risks in each of the most relevant PPA markets,
- Identify and handle risks in the context of PPAs,
- Evaluate the development of market risks for the next ten years, and
- Develop strategies in order to mitigate market risks along the value chain.
Agenda
Session 1: Analysis of PPA markets and structures in Europe
- Types of PPAs in the most relevant PPA markets in Europe
- Exercise I: mapping and categorising PPA risks
- Pay-as-Produced, Pay-as-Nominated, baseload, virtual: What are prices, what are risks
Session 2: PPA demand
- Different types of PPA buyers and their needs (case study)
- Regulatory framework for more demand in PPAs and GoOs
- Current landscape of hedge products in Europe (trading volume at the exchange vs. real consumption)
- Different shades of green: What do corporates want and why?
- Accounting pitfalls for corporates: virtual vs. physical PPAs
- Exercise II: summarising PPA risks for corporate buyers
Session 3: PPA risks in the fair value approach - I
- Deriving the “correct” base parity ratio (capture rate) and related weather risks
- Shape risk consisting of price risk, volume risk and profile risk, incl. case study on a baseload solar PPA
- Counterpositions at the derivatives market: stack-n-roll hedge
- Case of virtual cross-border PPAs: risks and hedging
Session 4: PPA risks in the fair value approach - II
- Assess balancing risks: analysis on spot market trade and balancing group management
- GoOs: historic and future price and market development
- Residual risks for PPAs
Session 5: Understanding the drivers of market risks
- Understanding market price risk: commodities, fiscality, weather, and climate change
- Overview: profile and shape risk in different European markets
- Fusion of fundamental models and statistics: Energy Brainpool’s swarm scenario approach
Session 6: risk management 2.0 – portfolio optimisation
- Modern portfolio theory and its use for PPAs
- Influence on types of risk through diversification
Case Study: Impact of portfolio strategies on residual risks (for supplier companies)
Please register via https://montelgroup.com/resources/events/ppa-advanced-managing-market-r…
Regardless of whether you are a career changer in the energy sector or a long-standing specialist: you are always faced with new challenges and need up-to-date specialist information to cope with your professional tasks. Time and money are tightly budgeted and leave little room for long-term energy market training.
We offer compact trainings for the efficient and sustainable transfer of current market knowledge. We work independently and regularly observe and analyse market changes - and pass on our findings and experience in the training courses. We bring complex correlations to the point in a clear and understandable way. The live trainings give you the opportunity to talk directly with our experts and participants from the industry.
We offer compact trainings for the efficient and sustainable transfer of current market knowledge. We work independently and regularly observe and analyse market changes - and pass on our findings and experience in the training courses. We bring complex correlations to the point in a clear and understandable way. The live trainings give you the opportunity to talk directly with our experts and participants from the industry.
No suitable topics or dates found? We will be happy to help you. Please contact us!
Luisa Castro
Assistant