Power purchase agreement training workshop – ICA Works with ALSF to train Stakeholders from Nine Different Countries
1 February 2014
February 1st| Tunis: The Infrastructure Consortium for Africa (ICA), along with the African Legal Support Facility (ALSF) hosted a successful one-week training session on Power Purchase Agreements. The workshop was held in Nairobi from January 27th to February 1st and was attended by representatives from nine different African Countries. The theme of the workshop was Enhancing Private Sector Participation in Renewable Energy through Power Purchase Agreements.
The five-day training workshop was structured so that participants received a comprehensive opportunity to understand all the nuances of Power Purchase Agreements.
The workshop started with technical presentations on renewable energies – solar, wind, geothermal, biomass and thermal. Participants learned that despite the different technologies, there are principle commonalities such as land rights, grid connection, electricity supply, force majeure, fuel supply and off-taker risks. The second day of the workshop was dedicated to a more in-depth analysis of actual components of a Power Purchase Agreement (regulatory and procurement strategy). Also issues such as risk assessment, data availability, taxes, market testing and bidding were discussed. The third day included a site visit to the Ngong Hills Wind Farm -- followed by a review of the previous days issues and a practical exercise aimed at highlighting the need for an enabling environment in order to attract investors. This exercise was followed by lively discussion from the participants. The final day of the workshop was dedicated to enhancing negotiation skills and dispute resolution.
“… The participants learned a lot…” said Mr.Callixte Kabande, the ICA Energy Platform manager. “… We tried to structure this workshop so that participants were always engaged … and it was successful …”
The participants of the workshop included representatives from Ministries of Energy, Finance and Justice –from Ethiopia, Kenya, Mozambique, Rwanda, Sudan, Tanzania, Uganda, Zambia and Zimbabwe. There were also representatives from Power Utilities, Regulator Offices and Public-Private-Partnership units. The end-of-workshop evaluations indicated most participants felt they had learned a great deal about the details of Power Purchase Agreements. Participants also said the workshop offered insights into the need to strengthen [human resource] skills in negotiating transactions. One issue that was particularly clarified in the workshop was an understanding that power purchase agreements do not live in isolation – they are coupled with other agreements, so developing a contractual matrix to weigh consistency is important.