Course 13 of 20 · Power Origination and PPA Desk Academy

Pricing Structures & Embedded Flexibility

Stage C, Settlement and pricing. Level 7 of 10.

Designing collars, floors, caps, indexation and volume flex, and pricing the optionality each clause grants.

124 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 06, Course 11, Course 12

Enrol or enquire See the 124 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 · 124 chapters

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

M0 What a Structure Adds to a Settled Strike Ch 1-11
  1. The Flat Strike and the Four Questions It Leaves Open
  2. Every Structure Clause Is a Grant From One Party to the Other
  3. Three Seats and the Balance Sheet Each Clause Lands On
  4. What the Long-Term Price Build Hands This Work
  5. What the Settlement Mechanic Hands This Work
  6. Why a Renewable Generator Asks for a Floor
  7. Why a Corporate Offtaker Asks for a Cap
  8. The Volume Question Sitting Underneath Every Price Clause
  9. Five Structures Built in This Material
  10. The Simplified Baseline This Material Starts From
  11. What a Defensible Structure Clause Must State
M1 Direction, Grant and the Inversion Check Ch 12-21
  1. Protection, Grant and Beneficiary Are Three Separate Facts
  2. The Grant Register Kept Beside the Draft
  3. A Limit Shields Whoever Is Hurt by the Move It Stops
  4. Reading a Clause Cold for Which Party Pays More
  5. The Inversion Check, Run Line by Line
  6. Pushing the Reference Price to Both Extremes
  7. Possessives and Perspective Words That Smuggle in the Wrong Seat
  8. Why Calling a Structure Mutual Hides the Exchange
  9. Three Clauses Read Cold and Attributed
  10. The One-Page Direction Summary That Travels With the Contract
M2 The Floor: Protection for the Generator, Granted by the Offtaker Ch 22-33
  1. What a Floor Obliges the Offtaker to Pay
  2. Setting the Floor at the Project's Debt Service Line
  3. A Floor Pitched at Cash Operating Cost Instead
  4. A Floor on the Reference Against a Floor on the Settlement Amount
  5. Where a Floor Bites and a Negative-Price Stop Does Not
  6. An Escalating Floor Against a Static One Over Twenty Years
  7. A Floor Tested Annually Against One Tested Each Settlement Period
  8. A Floor Limited to a Stated Share of Contracted Volume
  9. The Floor an Offtaker Will Refuse, and Its Reasoning
  10. Evidencing a Floor Level to the Offtaker's Procurement Committee
  11. A Floor Protects a Price, Not a Project
  12. A Floor Computed Through Three Illustrative Settlement Months
M3 The Cap: Protection for the Offtaker, Granted by the Generator Ch 34-44
  1. What a Cap Stops the Offtaker Paying
  2. Setting the Cap at the Offtaker's Budget Ceiling
  3. A Cap Pitched Against the Offtaker's Alternative Supply Route
  4. The Upside a Generator Surrenders by Granting a Cap
  5. A Cap on the Reference Against a Cap on the Invoice
  6. A Ceiling on the Yearly Rise Rather Than on the Level
  7. A Cap That Applies Only in Stated Months
  8. An Aggregate Cap on Cumulative Payments Across the Term
  9. A Cap Granted in Exchange for a Longer Term
  10. The Cap a Project Lender Will Resist
  11. A Cap Computed Across an Illustrative High-Price Year
M4 Collars, Corridors and Shared Bands Ch 45-55
  1. The Collar as Two Grants Running in Opposite Directions
  2. Naming Both Grants Before Agreeing a Corridor
  3. The Zero-Premium Corridor and the Levels That Make It So
  4. Corridor Width and What a Narrow Band Does to Both Parties
  5. An Asymmetric Corridor and Which Side Came Out Ahead
  6. Proportional Sharing Between the Two Trigger Levels
  7. A Three-Tier Structure Read Back to Its Holders
  8. A Corridor Centred on an Escalating Mid-Point
  9. A Corridor That Resets on a Stated Event
  10. When a Corridor Collapses Into a Fixed Price
  11. A Corridor Computed at Five Illustrative Reference Levels
M5 Indexation and the Direction Inflation Risk Moves Ch 56-67
  1. A Fixed Nominal Price Moves Real Value to the Offtaker
  2. Full Indexation Moves Inflation Risk to the Offtaker
  3. Partial Indexation and Who Carries the Unindexed Share
  4. Choosing the Published Series the Escalation Reads
  5. Base Date, Lag and the Compounding Convention
  6. A Zero Floor on the Escalation Protects the Generator
  7. A Ceiling on Annual Escalation Protects the Offtaker
  8. Indexing Only the Fixed Component of a Split Price
  9. A Sculpted Price Path Instead of an Escalation
  10. A Declining Nominal Path and What It Assumes
  11. When the Chosen Series Is Rebased or Withdrawn
  12. An Indexed Price Computed Across Fifteen Illustrative Years
M6 Volume Flex: Latitude Held by One Party at the Other's Cost Ch 68-79
  1. The Band Around a Contracted Annual Quantity
  2. Downward Latitude Held by the Offtaker, Funded by the Generator
  3. Upward Latitude Held by the Offtaker and What It Costs the Generator
  4. Latitude Held by the Generator to Deliver Less Than Nominated
  5. The Nomination Calendar That Decides What a Band Is Worth
  6. Excess Output Above the Band and Where It Goes
  7. Shortfall Below the Band and the Make-Good Mechanic
  8. Banking Unused Volume and Carrying It Forward
  9. A Minimum Take Obligation Expressed as a Price Term
  10. Which Direction of Band Is Cheaper to Grant, and Why It Depends
  11. A Band That Widens as the Term Runs
  12. A Volume Band Worked Through an Illustrative Contract Year
M7 Pricing the Optionality a Clause Grants Ch 80-91
  1. Why a PPA Limit Is Worth Something Nobody Quotes
  2. Building the Reference Price Scenarios the Valuation Reads
  3. Compute the Payoff in Each Scenario, Then Average the Payoffs
  4. The Error of Applying a Floor to an Averaged Capture Price
  5. Valuing a Floor From the Generator's Seat
  6. Valuing the Same Floor From the Offtaker's Seat
  7. Valuing a Cap the Generator Has Granted
  8. Netting the Two Payoff Sets Inside a Corridor
  9. Pricing the Escalation Ceiling the Generator Granted
  10. Pricing a Volume Band by Averaging Its Outcomes
  11. How Much Weight to Put on Each Reference Path
  12. What the Averaged Payoff Cannot Tell Either Party
M8 Trading the Grant in a Negotiation Ch 92-102
  1. Converting a Priced Grant Into a Strike Adjustment
  2. Taking Additional Term Instead of a Price Change
  3. The Concession Ladder Each Party Brings to the Table
  4. Two Offers With Identical Strikes and Different Structures
  5. Putting Two Structure Packages Onto One Valuation Basis
  6. The Grant Nobody Priced, Conceded in Correspondence
  7. A Price Reopener Treated as a Grant, Not a Formality
  8. Who Inside Each Organisation Must See the Grant's Price
  9. Explaining a Corridor to a Board That Wanted a Fixed Price
  10. Structures This Desk Should Decline to Grant at Any Price
  11. Handing the Agreed Structure to the Term Sheet
M9 Testing a Drafted Structure Before Signature Ch 103-113
  1. Computing the Whole Structure at Three Reference Levels
  2. The Sensitivity Grid a Structure Negotiator Carries
  3. Order of Operations Between a Bound and a Deduction
  4. The Drafting Mistakes That Reverse a Limit
  5. Defined Terms Used Inconsistently Across One Structure
  6. A Bound Applied to the Wrong Reference Period
  7. Can This Structure Produce an Outcome Neither Party Intended
  8. Decimal Places, Rounding Points and the Monthly Invoice
  9. One Structure, Two Computations, One Reconciliation
  10. The Inversion Pass Over the Complete Drafted Package
  11. The Checklist Worked Before a Structure Is Executed
M10 Two Structures Worked, and the Limits Ch 114-124
  1. Case One: A Wind Generator and a Food Manufacturer
  2. Case One: Designing the Floor and Its Escalation
  3. Case One: Pricing the Grant and Trading It for Strike
  4. Case One: Defended to the Manufacturer's Procurement Committee
  5. Case Two: A Solar Generator and a Data Centre
  6. Case Two: Designing the Corridor and the Volume Band
  7. Case Two: Pricing Both Grants and Netting Them
  8. The Two Cases Compared Clause by Clause
  9. The Same Two Deals Written Without Any Structure
  10. What Pricing Structures Cannot Do
  11. Where the Structured Contract Goes Next

The brochure gives each of these 124 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 13 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