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 Model

• Revenue models: sale of turn-key plant, sale of power and availability, pay-as-you-go, leasing
• Pricing in renewable energy projects: feed-in tariffs, auctions, whole-sale
• Financial model drivers: fixed and variable costs, major maintenance requirements, tax;
• Other sources of income: carbon credits, tax credits.

 

4.Financing

• Financing instruments: equity, loan, bond, leasing structures, guarantees, Islamic financing structures;
• Modelling debt: repayment methods, interest calculations, credit ratios.
• Debt sculpting and debt optimization in financial model

 

5. Modelling

• 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;
• Deal structuring: mutliple equity partners, multiple debt funders and offaker's view;

 

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;
• 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: comparison of EPC offers or term sheets;
• 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.