Renewable Energy Financing & Modelling (3-5 days)
Understanding and modelling of renewable energy projects of all sizes:
1. Renewable Energy Resources & Technologies
- Solar photovoltaics, wind, hydro, tidal stream, concentrated solar thermal, renewable heat, biomass, biofuels, waste-to-energy, geothermal, hybrid solutions;
- Estimation of annual energy production and variability;
- Measures to compare projects and technologies.
3. Business Models
- Revenue models: pricing of renewable energy power under various frameworks including fee-in tariffs and auctions;
- Operational costs: fixed, variable, working capital;
- Other sources of income: carbon credits, tax credits.
- Financing instruments: equity, loan, bond, leasing structures, guarantees, Islamic financing structures;
- Modelling debt: repayment methods, interest calculations, credit ratios.
5. Modelling Building
- Objectives of a financial model;
- Building cash flow model in Excel that reflects the business model and choice of financing, project milestones as well as taxation and variations over time;
- Special topics: mutliple equity partners, multi-currency project;
- Model comparison.
6. Structuring & Investment Decisions
- Using the model to structure a deal that allows both investors and lenders to participate;
- Applying uncertainty in annual energy production to lending decisions: debt sizing;
- Re-financing debt, secondary equity sale.
7. Risk Assessment & Strategy
- Identification of risks, including credit, market, interest, infrastructure, engineering, liquidity, supply, currency, political and environmental;
- Discussing structures to allocate, finance or mitigate risk and impact on financial model.
8. Using the Model Output
- Sensitivity analysis: computing impact of changes in parameters on key project metrics;
- Scenario analysis: what-if analysis;
- Monte-Carlo analysis: estimating likelihood of reaching a target rate of return taking into account annual variability in supply of renewable power.
9. Other Topics
- Financing merchant power projects;
- Hybrid solar / diesel / battery systems: estimating annual energy production with curtailment as well as fuel savings.