Financial Modelling
for Renewable Energy Projects4 days or 8 half-days
Develop a financial model that considers the strong seasonality of renewables projects and optimise the financing plan.
In this course, you will construct a project finance model from scratch and use it to perform a discounted cash flow analysis.
From the power generation capacity, you will build a revenue profile based on the agreed price, whether it be under a PPA, a subsidy scheme or simply the market price and consider the deterioration of equipment over time.
You will learn to model senior debt with a sculpted repayment profile to match a fixed cover ratio and ensure repayments follow the seasonality profile of your renewable project.
This course is designed to help you:
- Develop and build flexible and robust financial models with a semi-annual timeline
- Construct and use a cash cascade to service financial instruments and reserve accounts
- Understand and use NPV, IRR and debt cover ratio techniques
- Model debt with sculpted repayment profiles and cash sweeps
- Understand the concept of power yields-based probabilities (P50, P90) as part of scenario management
- Perform sensitivity and scenario analysis
- Simplify formulas using logical masks, switches, and counters
- Adopt a quality control approach throughout the model development process
For convenience, the course can be delivered in two parts, and we can offer the first part as a standalone course in its own right.
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Part 1: Methodology & Techniques
You will learn a number of fundamental techniques and concepts by developing your own project finance model, using it to assess the feasibility of a project. You will explore both the investment and financing decisions based on an optimised financing plan and the debt cover ratios and other returns.
By the end of part 1, you will have constructed a model allowing you to perform a discounted cash flow analysis and explore relevant sensitivities.
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Part 2: Extended Techniques
You will further develop the model constructed in part 1 and delve into a range of sophisticated financial modelling techniques for developing a plan for financing a project.
You will develop several increasingly complex features associated with debt modelling, including grace periods, the cash cascade, debt sculpting, the cash sweep, and the debt service reserve account (DSRA). You will also explore techniques for handling and managing circularities, as well as the concepts and applications of the various debt cover ratios.
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Date Course Format Time Zone Price Register interest 18-21 January 2021 Solar
(Part 1)Online GMT £1200 18-21 January 2021
25-28 January 2021Solar
(Parts 1&2)Online GMT £2400 15-18 February 2021 Wind
(Part 1)Online GMT £1200 15-18 February 2021
22-25 February 2021Wind
(Parts 1&2)Online GMT £2400 15-18 March 2021 Solar
(Part 1)Online GMT £1200 15-18 March 2021
22-25 March 2021Solar
(Parts 1 & 2)Online GMT £2400 VAT of 20% is required to be levied for training courses conducted in the United Kingdom. Training courses conducted outside the UK may include local sales taxes, where applicable. The fees below are quoted net of any taxes.
In-house Courses
Where there is a demand for multiple delegates from the same firm, it may be better to run an in-house course. This is a cost-effective method of training participants from the one company, conducted on your chosen date, either at your premises or ours, for up to eight delegates.
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