The PPA Negotiation Challenge: Aligning Developer, Offtaker, and Investor Priorities

Synopsis

Power Purchase Agreements involve multiple parties with competing priorities. Developers seeking revenue certainty, corporate offtakers demanding price stability and flexibility, and lenders requiring bankability. This session explores practical strategies for managing these conflicting interests, identifying common friction points, and structuring deals that achieve financial close while creating value for all stakeholders.

• The distinct objectives of developers, corporate offtakers, lenders, and equity investors and where their interests align and diverge in PPA negotiations
• Where stakeholder interests conflict including contract duration, price indexation, volume risk, curtailment, and termination rights and strategies to find acceptable compromises
• Practical approaches such as hybrid structures, flexible offtake mechanisms, and credit enhancement solutions to balance competing demands and achieve financial close