Structuring Hybrid Renewable Offtake Agreements: Key Provisions, Risks and Limitations, Financing, Best Practices
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Energy
- event Date
Wednesday, November 16, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide guidance to energy counsel and advisers on key issues and considerations for structuring offtake agreements for hybrid renewable energy projects. The panel will discuss effective contract structures, financing risks, key provisions to minimize risks, and other items essential to the use of offtakes for hybrid renewable energy projects.
Mr. Kaufman 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. Mr. Kaufman 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.
Ms. Wilson focuses exclusively on energy transactions. She represents energy companies, infrastructure funds, utilities, lenders and tax equity investors in the purchase, sale, development, construction and financing of energy projects, portfolios and companies, including renewable generation projects (utility-scale, distributed and residential solar, onshore and offshore wind, biomass and hydro), energy storage facilities, transmission systems, hydrogen production facilities, gas-fired power generation facilities, natural gas pipelines, and other energy-based transactions. Ms. Wilson also regularly advises commercial and industrial companies in the procurement of renewable energy and renewable energy credits pursuant to corporate power purchase agreements.
Ms. Opadiran concentrates her practice on the development, tax equity and debt financing, acquisition and divestiture of energy and infrastructure-related projects. She is experienced in drafting and negotiating purchase and sale agreements, financing and collateral agreements, power purchase agreements, transmission service agreements and ownership agreements.
An offtake agreement is an arrangement between the project company and the party buying the energy and related products that the project will produce and deliver over time. These agreements incorporate critical terms such as payment mechanisms, operating requirements, performance guarantees, events of default, periodic testing requirements, and other significant provisions. Counsel must identify risks associated with these agreements and ensure that such contracts are aligned with the goals of projects, utilities, and investors to secure revenue.
A properly structured offtake agreement for hybrid renewables can secure revenue, shift risk, and provide for other items beneficial to the energy project company and the purchaser. Energy counsel must understand the nuances of these complex contract structures, the associated risks, and available financing approaches.
The effectiveness of any offtake structure and financing hinges on a complete understanding of key terms, attributes, and regulatory implications applicable to an energy project.
Listen as our panel analyzes the available offtake arrangements for hybrid renewables, financing risks, key terms and provisions to minimize risks, and other items essential to using offtakes for hybrid renewable energy projects.
- Risks and limitations of offtake agreements
- Offtake arrangement options for hybrid renewable projects
- Structuring and financing offtakes
- Best practices to minimize risks and ensure regulatory compliance
The panel will review these and other key issues:
- The associated risks of offtake agreements for hybrid renewable energy projects
- Available offtake arrangements for hybrid renewables
- Contract structures and financing risks
- Key terms and provisions to minimize risks associated with offtake agreements
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