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P17147 Power Sector Business Management
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Power Sector Business Management

09 – 11 Apr 2018, Singapore

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overview

Learning outcomes

  • Power sector workings, structures and economics
  • Regulatory drivers, and impact assessment
  • KPIs for IPPs
  • Enterprise risk management – Managing the key business risk areas for power sector
  • Contracts, Governance and Risk Management
  • Project Investment and Feasibility Analysis
  • Comparing Investment and ROI Across Different Power
  • Generation Systems
  • Pricing, Billing and Revenue Management
  • Revenue assurance
  • Case Studies and Group Exercises on:
    • Developing a 10-point risk management plan for your utility
    • Negotiating and structuring a bankable PPA
    • PPA and Electricity Price in Assessing Project
  • Feasibility
    • Evaluating sample EPC contracts for risk management
    • Reducing technical and non-technical losses in the power sector

Who Should Attend

  • CEOs, COOs and MDs
  • Directors on the Board
  • General Managers
  • Contract and Legal managers
  • Commercial Managers
  • Revenue and Finance Managers
  • Compliance and Regulatory Managers
  • Marketing and Business Development
  • Site Managers
  • Project Managers
  • Analysts

From Government departments, electric utilities, plant owners and investors, project developers, independent system operators, regulatory and research groups, and financiers.

trainer

James Booker Power Sector Business Management

James Booker

President Director, PT JBCS Indonesia

Agenda

DAY 1
POWER MARKETS AND STRUCTURES
WHAT IS A POWER PROJECT?

  • Main Characters
  • Contractual Structure
  • Who Does What?
  • Supporting Players
  • Main Agreements
  • Project Finance

POWER SECTOR WORKINGS

  • Market dynamics and mechanisms
  • Generation, Transmission, Distribution and Retailing
  • Power Project Ownership and Business Models
  • Evaluation and decision making on the choice of project ownership model

POWER GENERATION ECONOMICS

  • Technical, commercial and regulatory drivers of profitability
  • Plant types, characteristics and costs
  • Power system operations and costs
  • Interaction between generation and transmission
  • Benchmarking project ROI

REGULATORY DRIVERS, AND IMPACT ASSESSMENT

  • Different models for power markets, and what are the regulatory impacts for each
  • Commercial vs. non-competitive markets and the economic rationale behind monopolies
  • Transmission regulation and impact on industry
  • Electricity markets regulation and impact on pricing

KPIS AND RISK MANAGEMENT
KPIS FOR IPPS

  • Technical, Operational and Safety performance indicators
  • Commercial indicators and KPIs
  • Financial indicators and measurement metrics
  • Implementing a KPI framework

DEVELOPING KPIS FOR NEW TRENDS

  • Emissions and climate change regulations
  • ICT convergence and smart metering technologies
  • New technology investments and ROI

ENTERPRISE RISK MANAGEMENT – MANAGING THE KEY
BUSINESS RISK AREAS FOR POWER SECTOR

  • Rate policies – margins and reserves
  • Power supply costs
  • Support of policy makers
  • Budget management
  • Reliability of power supply
  • Technology and data failure risk

Case study and group exercise: Developing a 10-point risk management plan for your utility

DAY 2

CONTRACTS, GOVERNANCE
AND RISK MANAGEMENT
MAIN CONTRACT TYPES FOR IPPS

  • PPAs
  • EPC Contracts
  • Fuel sale and purchase agreements
  • Shipping contracts

PPAS

  • Features of PPAs
  • PPA structuring and negotiation
  • Tariff Calculation and Payment
  • Force Majeure
  • Frustration and Hardship
  • Default and Termination
  • Insurance requirements

PPA SPECIFIC PROVISIONS AND PERFORMANCE CLAUSES

  • Availability Payment
  • Inconvertibility Protection
  • Interface Issues
  • Deemed Dispatch
  • Grid Access
  • Special Facilities
  • Financing Date
  • Commercial Operation Date
  • Bonds
  • Testing
  • Availability Guarantee
  • Bonus/Penalty

Case Study and Group Exercise: Negotiating and structuring a bankable PPA

FEATURES OF AN EPC CONTRACT

  • Types of Construction Contract
  • Main Differences Between
  • Construction Contracts
  • Basic Features – Time, Cost and Quality
  • Assessing Bankability Criteria
  • Fixed Price and Date Certain
  • Security and Guarantees
  • Delays and Extension of Time
  • Defects Liability and Indemnity
  • Force Majeure
  • Suspension
  • Default and Termination

POWER SPECIFIC CLAUSES, INTERFACE ISSUES AND
CONTRACTOR PERFORMANCE IN EPC CONTRACTS

  • Grid Access Regime
  • Performance Tests
  • Reliability Test
  • Training
  • Multi-Unit Plants and COD Issues
  • Special Facilities
  • Completion Date
  • Output Guarantee
  • Heat Rate Guarantee
  • Liquidated Damages
  • Performance Bond

PROJECT CLAIM ISSUES AND SETTLEMENT

  • Identifying Common Areas of Claims
  • How and When to Bring up Claims
  • Matters to Weigh up when Deciding How to Claim
  • Claim Procedures to Follow and Claims Determination
  • Managing Claims relating to Project Delay and Cancellations
  • Resolving Claim Issues

Case Study and Group Exercise: Evaluating sample EPC contracts for risk management

NEGOTIATING AND MANAGING FUEL SALE & PURCHASE AGREEMENTS

  • Understanding buyer, seller and trader perspectives
  • Price
  • Quality deliverables
  • Transportation
  • Common causes of contractual disputes
  • Contract provisions for resolving price and other contract disputes
  • Other key clauses to negotiate

DAY 3

PROJECT INVESTMENT AND FEASIBILITY ANALYSIS
POWER SECTOR OUTLOOK

  • ASEAN region supply / demand dynamics
  • New projects in the horizon
  • Supply gaps and opportunities
  • Investment in renewables and implications

INVESTMENT DECISION EVALUATION

  • Power Project Investment
  • Screening & Selection
  • Project Design and Development Phases
  • Determining Project Economics and Payback timeframe
  • Comparison of CAPEX, OPEX, Plant Life and current fuel costs
  • Profit Optimization, Revenue and Life Cycle Cost Analysis
  • What business models exist for investment decisions

COMPARING INVESTMENT AND ROI ACROSS DIFFERENT POWER GENERATION SYSTEMS

  • Overview and comparison between various forms of power generation
  • Power plant fuel economics, availability and procurement
  • Selection criteria for power systems and components

Case Study and Group Exercise: PPA and Electricity Price in Assessing Project Feasibility

M&A PRACTICES IN THE POWER SECTOR

  • Selection criteria to determine suitable M&A targets
  • Success factors and preliminary considerations
  • Valuation techniques and models used for M&A in the power sector
  • Performing your due diligence prior to takeover – commercial, legal and financial
  • Compliance with state regulations governing mergers and takeovers
  • Financial issues, pitfalls and challenges concerning M&A in the power sector

PRICING AND REVENUE MANAGEMENT
PRICING FOR IPPS

  • Power commercial structures & pricing fundamentals – short & long run marginal cost
  • Pricing linked to external factors e.g. carbon, emissions regulations, fuel import duties
  • Electricity tariffs, and how use-of system tariffs are designed
  • Calculating the generation component of tariffs
  • Nodal price calculations
  • Transmission pricing charges for different users
  • Cost and financial value of power produced

BILLING AND REVENUE MANAGEMENT

  • The billing process and revenue cycle
  • Integration of bundled services and products
  • Integration of information channels
  • Using Customer Analytics
  • Smart metering and billing innovation

REVENUE ASSURANCE FOR IPPS

  • Typical areas of revenue leakage
  • Monitor, identify and prevent commercial losses
  • Preventing revenue leakages with third parties
  • Managing lack of data integrity
  • Payments, collections and debt recovery

Case Study and Group Exercise: Reducing technical and nontechnical losses in the power sector

when & where

09 - 11 Apr 2018

Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li
Email: aili.tan@meritushotels.com
Website: www.meritushotels.com

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