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Build-Transfer Agreements for Renewable Energy Projects: Deal Structures, Key Challenges, and Risk Considerations

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, March 12, 2024

Recorded event now available

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This CLE course will provide energy counsel with an in-depth analysis of build-transfer agreements (BTAs) for renewable energy projects. The panel will discuss essential structuring methods for build-transfer transactions, critical components of BTAs, and overcoming challenges that may arise during the engineering, procurement, and construction phases of BTA projects.

Description

Build-transfer transactions are creating new opportunities for the development and construction of renewable energy projects. As a hybrid between an acquisition agreement and a construction contract, BTAs allow for the direct ownership of a new renewable energy project as an alternative to power purchase agreements and provide incentives to utility or corporate owners and potential tax equity investors.

In a build-transfer arrangement, a third party develops and constructs a renewable energy project and transfers it to the utility upon completion, assuming regulatory approval and other customary closing conditions for the transaction. The developer secures the land rights, permits, project contracts, and other rights necessary to build the project for the utility. The utility then takes ownership under the terms of the BTA.

Parties to this type of deal structure must consider features of both M&A purchase and sale agreements and EPC agreements. Counsel must negotiate and accurately tailor essential provisions such as development-stage and construction-stage covenants, closing conditions, warranties, limitations of liability, and project oversight.

Listen as our panel discusses structuring techniques for renewable energy project development using BTAs, provisions to reduce risk, implications for construction financing, and overcoming obstacles for build-transfer transactions.

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Outline

  1. Challenges and opportunities of utility ownership
  2. Structuring BTAs for renewable energy projects
  3. Negotiating key terms and avoiding mishaps in drafting BTAs

Benefits

The panel will review these and other key issues:

  • Effectively using BTAs for renewable energy project development
  • Negotiating and drafting representations, warranties, covenants, and other key provisions
  • Construction financing of BTA projects
  • Impact of BTAs on projects using PTCs or ITCs

Faculty

Martino, Brett
Brett Martino

Attorney
Clean Energy Counsel

Mr. Martino shares a passion for energy solutions that protect and preserve the planet. He brings over a decade of...  |  Read More

Stapleton, Gary
Gary Stapleton

Attorney
Clean Energy Counsel

Mr. Stapleton's deeply held belief that each of us has a responsibility to make a better world for each new...  |  Read More

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