DISCOVER NEW BUSINESS MODELS • MASTER NEW FUNDING STRUCTURES • COVER A RANGE OF RENEWABLE TECHNOLOGIES

The 3-Day course in Renewable Energy Modelling teaches you how to create and analyse financial models for renewable energy projects for a variety of technologies including solar, wind, hydro, biomass and tidal. The course looks at different business models and funding structures.

Address Key Issues

Create and analyse financial models for renewable energy projects

Gain A Full Understanding

Estimate project benefits and returns for all participants – developer, investors, and debt providers

Key Takeaways

Assess and analyse project risks

Packed with Case Studies from around the world

Driven by demographics, need for economic growth and concerns about climate change, renewable energy assets are seen increasingly favourably by investors. As a result of the huge decline in costs some of those technologies, especially wind and solar are hugely favourable and given the distributed nature of renewable energy sources, those technologies are also challenging the business models of traditional utilities and enable access to electricity for millions of people worldwide who are far removed from existing grid infrastructures.

Fluctuations in supply, flexibility in plant sizes and applications as well as secondary revenue streams, from the sale of green certificates, are peculiarities that need to be adopted in financial models and structures.

This course on renewable energy modelling and financing presents the tools to analyse and structure renewable energy projects and to incorporate and measure inherent risks required to navigate any renewable energy project.

IN JUST 3 DAYS YOU WILL:

  • Understand the characteristics of renewable energy projects and what makes them different from other energy projects
  • Learn about different operating models and contracts as well as financing instruments used to fund renewable energy projects
  • Explore the use of non-recourse project finance in renewable energy finance
  • Develop and use a financial model that allows in-depth quantitative analysis of renewable energy projects. The financial model is crucial in assisting developers, investors, lenders, and customers with structuring finance, assessing risks, and building a convincing business case
  • Learn how to use scenario analysis to assess different funding structures, term sheets, offers from contractors
  • Use the financial model to find and optimize a power tariff that can be put forward in a tender
  • Identify and categorise risks and study strategies to control, mitigate, finance, avoid and manage them
  • Examples and case studies will be used to illustrate the principles

MEET YOUR TRAINER

Our Expert Trainer is a Managing Director of an independent specialist consultancy advising companies in clean energy across the value chain and technologies. He brings project ideas to fruition by bridging complementary areas of renewable energy technologies, project finance, and experience in project development.

He has been involved as both consultant and developer in utility-scale solar and wind power, solar greenhouses, and waste-to-energy plants in Europe, Africa, and the Middle East.

Organisations that will benefit:

  • Energy Companies
  • Investment Banks
  • Fund Managers
  • Investors
  • Project Developers
  • Power Companies
  • Utilities
  • Renewable Energy Services

Who will attend:

  • Investment Analysts
  • Business & Strategy Analysts
  • Business Development Managers
  • Debt Analysis

COURSE AGENDA

Day 1: Technology, Commercial Aspects, and Basic Modelling ⇓

  • Introduction: what is peculiar about renewable energy projects? Typical project structure and milestones
  • Renewable energy sources and technologies: characteristics relevant for financing
  • Commercial models: sale of project rights, turn-key sale, build-and-operate
  • Pricing methods: feed-in tariff, auctions, bilateral negotiations, and merchant sale
  • Elements of a power purchase agreements reflected in financial model
  • Secondary revenue streams: environmental attributes and tax credits
  • Operational cost drivers and working capital requirements
  • Creating a cash-flow based financial model in Excel: objectives, basic principles, key metrics (Case Study: 50MW solar photovoltaic power plant)

Day 2: Financing Instruments and Deal Structuring ⇓

  • Financing instruments: debt instruments, equity, leasing, guarantees, investment tax credits
  • Modelling debt:
    • Lown draw-down for construction: calculating capitalized interest during construction, drawdown-methods: pro-rata, equity-first, equity-last
    • Use of credit ratios in loan evaluation: debt service cover ratio, residual and others
    • Repayment schedules: equal principal, amortizing, cash sweep, debt optimization and sculpting
    • Upfront fees
    • Covenants
    • Debt service reserve account
    • Tax shield
  • Modelling equity: calculating cash flows for all participants: developer vs investors
  • Investment and lending decisions: what makes a project “bankable”?
  • Deal structuring: the art of balancing all participants’ requirements
  • Valuation of embedded carbon project (selling carbon credits)
  • Debt re-financing to optimize debt after commercial operation date
  • Secondary equity sale as an exit strategy for early investors
  • Building portfolios: sequencing
  • Over-sizing plant capacity for optimization
  • Overview of tax optimization Case Studies:
    (a) continuation of the case study from Day-1 (re-fining the model)
    (b) Commercial Roof-top solar competing against a 3-tiered grid-tied power tariff in South Africa
    (c) The 800MW solar tender in Dubai

Day 3: Risk Analysis and Strategy & Hybrid Systems ⇓

  • Hybrid Systems: systems with renewable energy sources, backup generators, and batteries for self-consumption, off-grid, and weak-grid applications. Challenges of hybrid systems and differences to grid-connected applications. Required modifications to the financial model
  • Comprehensive risk analysis: identifying risks and determining implications on the financial model
  • Risks including engineering and infrastructure risk, credit risk, supply risk, market risk, interest rate risk, currency risk, completion risk, political risk, force majeure, and modelling risk
  • Case Studies: waste-to-energy plant in Nigeria, hydropower plant in Malaysia
  • Evaluating the variability of renewable sources using exceedance probabilities (P-90, P-95)
  • Risk analysis to assist in structuring and investment and lending decisions using the model
    • Sensitivity analysis: what-if analysis
    • Two-way sensitivity analysis
      Case Study: evaluating the developer’s choice: “free carry” vs. “development fee”
    • Scenario analysis:
      Case Study: evaluating EPC offers or investors’ term sheets
  • Monte Carly analysis

For further information please call: +44 (0)1372 308547

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