Course 11 of 20 · Power Origination and PPA Desk Academy

Financial PPAs & Settlement

Stage C, Settlement and pricing. Level 6 of 10.

The settlement arithmetic of a contract for difference, including settlement period definition, reference price selection, invoicing and dispute mechanics.

125 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 05, Course 06, Course 07, Course 09

Enrol or enquire See the 125 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 · 125 chapters

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

M0 The Financial Contract as a Settlement Machine Ch 1-11
  1. What a Virtual Power Purchase Agreement Actually Exchanges
  2. The Difference Calculation Written in One Line
  3. A Reference Price Above the Strike Puts the Generator in Payment
  4. A Reference Price Below the Strike Puts the Buyer in Payment
  5. Three Arrangements Standing Side by Side
  6. Why This Contract Settles Net and What the Net Figure Hides
  7. Whose Seat Each Calculation Is Written From
  8. What Is Already Settled Before the First Invoice
  9. The Clause That Has to Be Computable by Two Strangers
  10. The One-Way Contract and the Floor the Buyer Grants
  11. The Route From a Period Definition to a Settled Invoice
M1 Defining the Settlement Period Ch 12-23
  1. The Settlement Period as the Smallest Unit the Contract Recognises
  2. Half Hours in Great Britain, Five Minutes in Australia's National Electricity Market
  3. An Hourly Auction Price Against a Half-Hourly Metered Volume
  4. When a Market Shortens Its Interval Mid-Contract
  5. Settling Interval by Interval Rather Than on a Period Average
  6. Why Averaging Before Subtracting Changes the Answer
  7. The Volume-Weighted Average and When It Is Honest to Use
  8. Clock Changes, the Short Day and the Long Day
  9. Which Calendar Day an Interval Straddling Midnight Belongs To
  10. The Billing Period Sits Above the Settlement Interval
  11. Drafting an Interval Definition Two Parties Can Both Compute
  12. A Worked Trading Day Netted to a Single Amount
M2 Selecting the Reference Price Ch 24-35
  1. What the Reference Price Is Being Asked to Stand For
  2. Day-Ahead Auction Outcomes as the Usual Choice
  3. Referencing an Intraday or Real-Time Price Instead
  4. The Case Against Referencing an Imbalance Price
  5. National, Zonal and Nodal Reference Points Compared
  6. Settling at a Hub While the Plant Injects at a Node
  7. Technology-Specific Reference Prices and Their Circularity
  8. A Published Index Against a Calculated Reference
  9. The Vintage of a Published Price and the Value That Was Restated
  10. Currency, Unit and the Megawatt Hour the Price Is Quoted In
  11. A Negative Reference Price Inside the Same Formula
  12. When the Named Index Stops Being Published
M3 Defining the Settled Volume Ch 36-46
  1. The Volume the Difference Is Multiplied By
  2. Metered Output as the Default Settled Quantity
  3. Gross Output, Net Export and the Station's Own Load
  4. Loss Adjustment Between the Meter and the Reference Point
  5. A Capped Quantity and the Megawatt Hours Beyond It
  6. A Fixed Quantity Settled Against a Variable Output
  7. Posting a Deemed Quantity Into the Invoice
  8. A Share of Output Rather Than All of It
  9. Rounding a Quantity and the Drift It Accumulates
  10. Invoicing on an Estimate Before the Confirmed Read Arrives
  11. The Quantity Statement the Two Parties Agree Each Month
M4 The Difference Calculation and Its Sign Ch 47-57
  1. The Signed Amount and the Convention That Must Carry It
  2. Reading a Positive Amount Back to Who Pays It
  3. Reading a Negative Amount Back to Who Pays It
  4. Why a Sign Convention Left Unwritten Will Be Read Both Ways
  5. Summing Intervals That Point in Opposite Directions
  6. Rounding and Precision Inside the Money Line
  7. Converting Currency Inside the Difference
  8. An Interval With No Generation and a Price Far From the Strike
  9. Two Mistakes That Invert a Settlement Spreadsheet
  10. A Plain-Language Read-Back of a Settlement Clause
  11. A Worked Month From Interval Amounts to One Payable Figure
M5 One-Way and Banded Settlement Variants Ch 58-67
  1. The Two-Way Contract Pays in Both Directions
  2. The Top-Up Only Variant and the Upside the Seller Keeps
  3. The Give-Back Only Variant and the Downside the Seller Keeps
  4. Settling a Floor That the Offtaker Granted
  5. Settling a Cap That the Seller Granted
  6. A Collar's Three Settlement Regions
  7. Applying a Strike That Steps or Escalates Through the Term
  8. Different Strikes for Different Hours of the Day
  9. Sharing the Difference Rather Than Transferring All of It
  10. Four Variants, One Month, Four Different Invoices
M6 The Invoice Ch 68-79
  1. What a Difference Invoice Must Show on Its Face
  2. Who Issues the Invoice When the Direction Reverses
  3. The Calculating Agent and the Single Statement
  4. The Supporting File That Travels With the Invoice
  5. Invoice Lines That Are Not the Difference
  6. Value Added Tax on a Payment That Changes Direction
  7. A Cross-Border Difference Payment and Withholding
  8. The Timetable From Data Cut-Off to Due Date
  9. Correcting an Issued Invoice Without Reopening the Month
  10. Interest on a Late Difference Payment
  11. Setting Off a Difference Amount Against Other Sums Owed
  12. Auditing One Invoice Against the Contract's Own Definitions
M7 Running Settlement as an Operation Ch 80-90
  1. The Settlement Calendar for One Contract Year
  2. Building a Settlement Model Both Parties Could Run
  3. Recalculating the Counterparty's Figure as a Standing Control
  4. Finding the Interval Where Two Calculations Part Company
  5. Version Control on the Price and Quantity Data Used
  6. Accruing the Next Settlement Before the Statement Arrives
  7. Forecasting the Coming Months of Settlement for Treasury
  8. Who on the Desk Owns the Settlement File
  9. Separating the Settlement Duty From the Origination Duty
  10. Handing a Contract Over Without Losing Its History
  11. Automating a Settlement Run and What Must Stay Manual
M8 Queries, Disputes and Determination Ch 91-102
  1. What the Contract Treats as a Settlement Dispute
  2. The Dispute Notice and the Clock It Starts
  3. Paying the Undisputed Part While Arguing the Rest
  4. The Four Things a Settlement Argument Is Usually About
  5. Arguing a Quantity: the Evidence That Moves It
  6. Arguing a Price: the Publication Is Usually the Answer
  7. Arguing an Interval Definition: a Drafting Dispute in Disguise
  8. A Restated Published Value After the Month Was Paid
  9. Escalating to People Who Did Not Build the Spreadsheet
  10. Expert Determination of a Calculation Question
  11. The Longstop After Which a Settled Month Stands
  12. What a Settlement Dispute Cannot Fix
M9 Cash, Exposure and the End of the Term Ch 103-112
  1. The Exposure a Difference Contract Creates Between Invoices
  2. Why the Direction of the Next Settlement Decides Who Is Exposed
  3. The Payment Lag and the Working Capital It Consumes
  4. An Offtaker Facing a Payment It Did Not Budget For
  5. A Seller Facing a Give-Back on Revenue Already Spent
  6. Suspending Settlement When a Payment Is Missed
  7. Settlement While a Force Majeure Period Runs
  8. The Final Settlement Statement at the End of the Term
  9. Reporting Settlement Outcomes Inside the Buyer's Business
  10. Reporting Settlement Outcomes Inside the Seller's Business
M10 Two Worked Contracts and the Limits of Settlement Ch 113-125
  1. Case One Introduced: a Wind Farm and a Data Centre Offtaker
  2. Case One: Fixing the Interval, the Reference and the Quantity
  3. Case One: A Month in Which the Seller Pays
  4. Case One: A Month in Which the Offtaker Pays
  5. Case One: A Negative-Price Week Through the Invoice
  6. Case Two Introduced: a Solar Plant and a Collared Contract
  7. Case Two: Three Months Across the Collar's Three Regions
  8. Case Two: A Hub Reference Against a Node Where Output Injects
  9. Case Two: A Restated Index and the Dispute It Produced
  10. Reading Both Contracts Back for a Reversed Direction
  11. What Settlement Arithmetic Cannot Tell You
  12. Interval Settlement Against Period Averaging: a Live Argument
  13. Where the Settlement Thread Continues

The brochure gives each of these 125 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 11 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