FINANCED BY: GLOBAL ALLIANCE FOR PEOPLE AND PLANET (GEAPP) and ELECTRICITY REGULATORY AUTHORITY (ERA)
SUPPORTED BY: GOVERNMENT OF SIERRA LEONE
The training provided the delegates with an opportunity to; understand the common business models of IPP including aspects of the commercial viability of IPPS, cost structure and recovery; understand how costs are modeled in the tariff; and project risks and how these are appropriately allocated in the power purchase agreement. GEAPP has committed to facilitating the training of the key players as the first step under the intervention framework.
The overall objective of the training was to build capacity within the Malawi and Sierra Leone electricity sectors in the areas of Power Purchase Agreement (PPA) negotiation and Financial Modelling with a special focus on electricity generation pricing and contracting through gaining an understanding of the common business models of IPPs, including aspects on the commercial viability of IPPs, cost structure, cost recovery and how costs are modeled in the tariff, project risk and how these are appropriately allocated in the power purchase agreement.
Training sessions include Commercial Aspects of Power Generation, IPP under a Project Finance Arrangement, Electricity Generation Costs and Generation Tariff Determination, Financial Modelling for Cost Recovery, Commerciality of PPAs and Contents & Provisions in PPAs and Cost Reflectivity Tariff End-User Pricing.
Part of the program was dedicated to visiting energy project sites so that trainees will have the opportunity of visualizing the operations and see how the several components discussed during training sessions are being executed: