Selected Project Examples

Review of existing power purchase agreements (PPAs) and derivation of recommended actions for future PPAs

Review of existing power purchase agreements (PPAs) and derivation of recommended actions for future PPAs

Fichtner subjected KenGen's Power Purchase Agreements (PPAs) to a comprehensive analysis and evaluation. The entire process was considered, including PPA development, PPA negotiations and management of active PPAs. Documents and processes were compared with international standards and best practice. From this, recommendations for KenGen were derived, especially with regard to the optimum balance between risks and cost-effective procurement prices. The PPAs covered the purchase of electricity from geothermal, wind, solar and hydropower plants.

Fichtner services

  • Definition of criteria for the evaluation of PPAs
  • Review and evaluation of current PPAs
  • Development of strategies for making the power purchaser (KPLC), as well as the regulatory authority (ERC), accountable in minimizing risks from the PPAs
  • Determination of factors influencing the agreed purchase price in the PPAs
  • Derivation of suggestions for improvement in future PPA processes and negotiations
  • Identification of improvement potential and training needs of KenGen's PPA team
  • Development of a model PPA for future tenders

Client

KenGen