ImperialX: Corporate Renewable Procurement: Opportunities in India

More specifically:

Module 1

Module 1 is about demystifying Corporate Renewable Procurement (CRP) and getting to grips with the basics. We will look into the economic case for CRP – i.e. why it makes economic sense for corporates to procure renewable energy, and we will also consider the main methods of carrying out CRP, including their pros and cons. We will also hear from industry participants, from both India and the UK, about their experience with CRP.

In module two we delve into the specifics of procuring renewable energy from a third party - which inevitably leads us to discussing Power Purchase Agreements (PPAs) and how their use by corporates is rising in the context of CRP. We will review some of the most common contractual structures of PPAs as well the key terms to look out for when negotiating a PPA. We will also discuss the major risks inherent to these contracts and some potential mitigants for these risks, including club deals and aggregators. Finally, we will be hearing from E.ON UK about their experience with procuring renewable energy to corporates.

In module three, we will be looking into the case for corporates to make direct investments into renewable assets, such as - for example - purchasing solar panels to install on the roof or taking an equity stake in a utility-scale project.

Although this course is not about investment decision-making, it would be difficult to articulate the case for a direct investment without first understanding some of the key concepts of investment decision-making. For this reason, the first two sections of this Module 3 will be dedicated to outlining some of the theoretical underpinnings, as well as some of the main practical considerations, of investment decision-making. We will then be in a much better position to tackle the key differences between direct investments and third party procurement (the subject of the previous module).

This week's case study is Acciona Energia, the world's largest 'pure play' developer and operator of renewable assets.

The fourth and final module is all about finance. We will look into why finance is so important, the different types of financing arrangements, issues of 'bankability' and the role of finance in achieving the scale required for a successful energy transition.

We will devote sometime to discussing your group assignment for this course to clear any doubts or concerns.