Independent Power Projects: Meeting Energy Challenges in an Age of Austerity

The global demand for electricity has been projected to double by 2030. This increase comes at a time of
reduced government budgets and a tightened climate for project finance. The concept of an Independent Power
Producer/Independent Power Project (IPP) has been around for more than 30 years. Under the IPP model,
governments or regulatory agencies outsource electricity generation to a private entity, in return for various
guarantees of reliability and availability. The nature of these transactions has led to, at best, mixed results for
both host governments and private entities. In an age of fiscal austerity and increasing government reliance on
public/private partnerships to create infrastructure, the IPP has gained new currency.

Planning and executing an IPP is a daunting task and the course is designed to provide participants the
background to anticipate and resolve some of the major challenges. This seminar is designed to familiarise
participants with the key commercial, operational, financial and regulatory aspects of IPP’s including power
purchase contracts, energy conversion agreements, fuel supply contracts, and transmission services.

Key issues in market assessment, risk identification, regulatory regimes, project structures and taxation issues,
project financing, are covered in depth. The course will also cover the project structuring, financial
considerations, involvement of multilateral development banks, and insurance aspects of an independent power
project. Case-study materials will feature both renewable energy and fossil fuel examples.