Key Contracting Issues for Hybrid Renewable Offtake Agreements: Essential Elements, Hazards, Financing and Strategies

Paul J. Kaufman
Paul J. Kaufman
Sheppard Mullin

Paul Kaufman is a partner of the Real Estate, Energy, Land Use & Environmental Practice Group in the firm's San Diego (Del Mar) office.

William M. Rappolt
William M. Rappolt
Sheppard Mullin

Bill Rappolt is a partner in the firm's Washington, D.C. office. He is a member of the Energy Industry Team and Real Estate, Energy, Land Use & Environmental Practice Group.

Live Video-Broadcast: February 7, 2023
Key Contracting Issues for Hybrid Renewable Offtake Agreements: Essential Elements, Hazards, Financing and Strategies

$95.00 1 hour CLE

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Program Summary

The webinar will be broken down into four segments. In the first segment we will review the current regulatory framework, with a focus on the regulatory response to battery storage and use of hydrogen as a fuel. In the second segment, we will review the basic forms and features of power purchase agreements, including the purchase obligation, payment provisions, and physical vs financial transactions. In the third segment, we will identify specific issues and structures that arise in the context of hybrid PPAs, which have defined as both combined wind and storage or combined solar and storage – although we will discuss hydrogen as a fuel. As part of this segment, we will discuss capacity markets and the specific issues that arise in the context of offering capacity. In the final segment of the webinar, we will identify lender and tax equity issues, including basis risk, curtailment, and performance obligations.

Key topics to be discussed:

  • Current regulatory framework
  • Basic forms and features of power purchase agreements
  • Identifying specific issues and structures arising in the context of hybrid PPAs
  • Identifying lender and tax equity issues

Date / Time: February 7, 2023

  • 2:00 pm – 3:00 pm Eastern
  • 1:00 pm – 2:00 pm Central
  • 12:00 pm – 1:00 pm Mountain
  • 11:00 am – 12:00 pm Pacific

Closed-captioning available

Speakers

Paul J. Kaufman_ Sheppard Mullin_myLawCLEPaul J. Kaufman | Sheppard Mullin

Paul Kaufman is a partner of the Real Estate, Energy, Land Use & Environmental Practice Group in the firm’s San Diego (Del Mar) office.

Areas of Practice

Paul has been an energy lawyer since 1984. Over a career of almost 30 years, he has negotiated all manner of project contracts, including power purchase agreements, hedges, interconnection and transmission agreements and equipment procurement and construction contracts. He represents parties in M&A transactions involving development and operating wind, solar, storage and other renewable projects. He works with renewable energy technologies, including on large wind, solar and biomass projects, and on conventional power plants using fossil fuels, as well as gas storage projects. In addition, he negotiates joint ventures, development agreements and precedent agreements for renewable energy project investors and developers and represented lenders in the review and analysis of project agreements for renewable generation projects in Central America, the U.S. and the Caribbean.

Paul returned to private practice in 2012 after serving as Executive Vice President (EVP) of Transactions with enXco, Inc., now EDF Renewable Energy. At enXco, Paul was responsible for the company’s commercial transactions, implementation of its projects and risk analytics. As EVP, he was involved in the marketing of output from wind and solar projects, the sale of those projects in “turn-key” transactions and the acquisition of projects for renewable technologies. As enXco’s General Counsel, he was responsible for all legal and regulatory affairs of company and communications on legal matters with its French parent company. He managed the legal aspects of the regulatory matters affecting the company as well as, project development, commercial transactions, corporate governance, corporate structure and mergers and acquisitions. Paul was the lead lawyer on large complex transactions. As both EVP and General Counsel, Paul participated in board and other management meetings involving risk review, strategic direction, litigation strategy, transaction origination and transaction approvals.

Prior to joining enXco, Paul was General Counsel for Iberdrola Renewables, the North American renewable energy subsidiary of Iberdrola. At Iberdrola (which was formerly known as PPM Energy, Inc.), his responsibilities were similar to those undertaken at enXco. However, in addition to its wind generation business, Iberdrola also operated gas storage and power and gas trading businesses.

Paul is a frequent speaker on energy topics, focusing on the acquisition of operating renewable energy projects. He is a member of the California and Oregon bars.

 

William M. Rappolt_ Sheppard Mullin_myLawCLEWilliam M. Rappolt | Sheppard Mullin

Bill Rappolt is a partner in the firm’s Washington, D.C. office. He is a member of the Energy Industry Team and Real Estate, Energy, Land Use & Environmental Practice Group.

Areas of Practice

Bill represents clients in the natural gas, electric and oil/liquids industries in commercial transactions and before federal agencies, including the Federal Energy Regulatory Commission (FERC), state utility commissions and appellate courts. Bill often represents natural gas pipelines and storage providers, electric generators, power marketing and trading companies, commercial class electric customers, electric utilities, independent electric transmission providers and oil/liquids pipelines and storage providers. He has worked across the renewable energy sector, including on wind, solar and biomass projects, and on electric battery storage projects.

Bill aids clients with rate-making issues involving cost of service, return on equity and rate design. He also advises and represents energy industry participants regarding tariff-related issues, natural gas pipeline certificates, Department of Energy (DOE) export and import authorizations, market-based rate authorizations, compliance with energy market rules and regulations, standards of conduct, interconnection rules and negotiations, and purchases and sales of energy facilities and companies.

Prior to practicing law, Bill was an energy industry analyst in the Federal Energy Regulatory Commission’s (FERC) Office of Administrative Litigation. In this role, he worked on numerous natural gas, oil/liquids and electric matters dealing with utilities’ rate making issues, interconnection requests and complaints concerning tariff compliance. He was responsible for developing and presenting positions on regulatory issues set for hearing before administrative law judges at FERC.

On a pro bono basis, Bill represents victims of domestic violence seeking Civil Protection Orders and victims of employer based discrimination in violation of Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), District of Columbia Human Rights Act (DCHRA) and the District of Columbia Family and Medical Leave Act (DCFMLA).

Agenda

I. Current regulatory framework | 2:00pm – 2:15pm

  • Regulatory response to battery storage
  • Use of hydrogen as a fuel

II. Basic forms and features of power purchase agreements | 2:15pm – 2:30pm

  • Purchase obligation
  • Payment provisions
  • Physical vs financial transactions

III. Identifying specific issues and structures arising in the context of hybrid PPAs | 2:30pm – 2:45pm

  • Capacity markets
  • Specific issues that arise when offering capacity

IV. Identifying lender and tax equity issues | 2:45pm – 3:00pm

  • Basis risk
  • Curtailment
  • Performance obligations