Course 05 of 20 · Power Origination and PPA Desk Academy

Pay-as-Produced, Baseload & Shaped Structures

Stage B, Structure, shape and risk allocation. Level 3 of 10.

Allocating volume and shape risk between seller and buyer, and sizing the shaping cost of each volume structure.

121 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 03

Enrol or enquire See the 121 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 121 chapters

Open any module for its full chapter list, in teaching order.

M0 Volume Shape as the First Allocation Decision Ch 1-10
  1. Shape Is Allocated Before Price Is Discussed
  2. Every Lopsided Volume Term Has a Grantor
  3. Three Families of Volume Structure, Side by Side
  4. Pay-as-Produced Leaves the Hours With the Buyer
  5. Baseload Moves the Hours to the Generator
  6. A Shaped Contract Splits Them at a Stated Point
  7. Shape Risk and Volume Risk Are Two Exposures
  8. Four Volume Words a Term Sheet Blurs
  9. What Courses Two and Three Already Settled
  10. Where This Allocation Stops and Who Takes Over
M1 Pay-as-Produced: Volume Risk Left With the Buyer Ch 11-21
  1. The Obligation to Take Whatever the Asset Makes
  2. Metered Output as the Contract Quantity
  3. The Buyer With No Load at Three in the Morning
  4. Delivered Hours Set Against Consumed Hours
  5. A Windy Night the Buyer Cannot Use
  6. Why a Generator Prefers Output-Following Delivery
  7. The Annual Estimate Nobody Guaranteed
  8. Resource Variation Lands on the Buyer's Budget
  9. A Cap on Delivered Volume, and Who Conferred It
  10. Output-Following With a Floor Underneath It
  11. Reading an Output-Following Clause Back for Direction
M2 Baseload and Firmed Delivery: Volume Risk Moved to the Generator Ch 22-32
  1. A Flat Quantity in Every Settlement Period
  2. The Generator Standing Behind Hours It Cannot Generate
  3. Firming as an Obligation Before It Is a Service
  4. Where the Missing Megawatt Hours Come From
  5. The Still Evening the Generator Must Still Deliver
  6. Generation Above the Flat Commitment
  7. What a Flat Delivery Promise Is Worth to a Buyer
  8. Firming Only a Named Proportion of the Term
  9. The Consequence When Firm Volume Is Not Delivered
  10. Why Few Single Assets Sell Firm Volume Alone
  11. Reading a Firm Delivery Annexe Back for Direction
M3 Shaped Structures: The Split Point Between Them Ch 33-43
  1. A Delivery Schedule Agreed Period by Period
  2. Monthly and Seasonal Shapes as the Coarser Option
  3. Peak-Only and Working-Hours Delivery
  4. Shaping the Schedule to the Buyer's Load
  5. Shaping the Schedule to Expected Generation
  6. Naming the Split Point in the Contract
  7. Deviation Rules Above and Below the Schedule
  8. The Case for an Asymmetric Schedule, and Its Assumptions
  9. Reshaping the Schedule During the Term
  10. A Shape the Asset Cannot Physically Follow
  11. Reading a Shaped Annexe Back for Direction
M4 Where Shaping Cost Comes From Ch 44-55
  1. Shaping Cost Defined as a Difference, Not a Fee
  2. An Unpriced Shape Is Funded From Somewhere
  3. The Periods a Renewable Asset Delivers Most
  4. The Periods a Corporate Buyer Consumes Most
  5. Overlap, Shortfall and Surplus as Three Quantities
  6. The Cost of Buying In the Missing Periods
  7. Why Surplus Energy Clears Below the Average
  8. Low Output and Dear Periods Arriving Together
  9. Quantity Shortfall Against Pattern Mismatch
  10. Seasonal Mismatch Across a Calendar Year
  11. Which Seat Pays the Shaping Cost Under Each Structure
  12. Shaping Cost Is Not the Same as Capture Discount
M5 Sizing the Shaping Cost of Each Structure Ch 56-67
  1. An Arithmetic Either Seat Can Rebuild
  2. The Flat Equivalent as the Starting Benchmark
  3. Laying Delivered Volume Against the Schedule
  4. Attaching a Period Price Assumption
  5. Averaging Payoffs, Never Averaging the Volumes
  6. Scenario Paths for a Variable Resource Year
  7. Sizing What Output-Following Costs the Buyer
  8. Sizing What Firm Delivery Costs the Generator
  9. Sizing a Shaped Schedule From Both Seats
  10. Turning a Sized Cost Into a Contract Term
  11. What This Sizing Deliberately Leaves Out
  12. An Illustrative Shaping Cost Ledger
M6 Quantities, Bands and Ceilings in the Contract Ch 68-79
  1. The Contract Quantity and How It Is Stated
  2. Expected, Minimum and Maximum Annual Volume
  3. What a Volume Tolerance Must State to Be Priceable
  4. Bands Measured Annually Against Period by Period
  5. Capacity Stated in Megawatts Against Energy Delivered
  6. The Floor Below Which the Generator Must Pay
  7. Take-and-Pay Against Take-or-Pay in an Offtake
  8. Carrying Undelivered Volume Into a Later Year
  9. Notice, Declaration and the Operating Calendar
  10. Surplus Volume and the Permission to Sell It Elsewhere
  11. The Measurement Point and the Volume That Counts
  12. Reading a Volume Annexe Back for Direction
M7 Who Closes the Gap, and On Whose Account Ch 80-90
  1. The Gap Is Always Closed by Somebody
  2. The Buyer Closing Its Own Residual Need
  3. The Generator Procuring Replacement Volume
  4. A Third Party Taking the Firming Obligation
  5. Allocating Firming Without Naming an Instrument
  6. Passing Firming Cost Through at Outturn
  7. A Fixed Firming Charge Agreed at Signature
  8. Sharing the Firming Outcome Between Both Seats
  9. Imbalance Exposure Created by the Allocation
  10. The Supplier Sitting Between Generator and Buyer
  11. What the Gap Allocation Cannot Transfer
M8 Shape Across Technologies and Several Assets Ch 91-100
  1. What a Solar Profile Does to the Allocation
  2. What an Onshore Wind Profile Does to the Allocation
  3. Offshore Wind and a Higher Load Factor Promise
  4. Hydro and Biomass Promising a Dispatchable Shape
  5. Two Assets in One Contract and the Blended Shape
  6. Adding a Second Technology to Shrink the Residue
  7. An Asset Not Yet Built and the Shape It Promises
  8. The Commissioning Period and Its Own Allocation
  9. Supply From an Unnamed Pool of Assets
  10. Storage Named, Sized Roughly and Deferred
M9 Comparing Offers That Differ Only on Shape Ch 101-110
  1. Two Offers Identical Except for the Shape
  2. Restating Competing Structures Onto One Basis
  3. The Cheapest Headline With the Worst Allocation
  4. Ranking Offers When the Ceilings Differ
  5. Matching a Structure to an Approved Mandate
  6. Explaining the Allocation to a Corporate Board
  7. The Concession That Survived Three Reviews
  8. Declining a Structure the Asset Cannot Serve
  9. A Comparison Grid for Four Volume Structures
  10. Where Shape Comparison Hands Over to Pricing
M10 Two Worked Allocations and the Limits Ch 111-121
  1. The First Brief: A Wind Project and a Data Centre
  2. Allocating the Overnight Periods in This Deal
  3. Setting the Contract Quantity Here, Part One
  4. Setting the Contract Quantity Here, Part Two
  5. Sizing This Deal's Shaping Cost
  6. A Weak Resource Year Under the Signed Structure
  7. The Second Brief: A Solar Portfolio and a Retailer
  8. Choosing Among Three Structures for the Retailer
  9. The Allocation Term That Should Not Have Been Given
  10. Reading the Whole Volume Allocation Back for Direction
  11. What Allocating Shape Cannot Do

The brochure gives each of these 121 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 5 of twenty

It stands alone, and it is also the entry point to the Power Origination and PPA Desk Academy pathway.

Enrol or enquire See the whole pathway