Financial Modelling for Renewable Energy Projects - APAC

Renewable energy projects often require significant financial analysis, and this hands-on financial modelling training course give you the skills and confidence required to develop a comprehensive financial model for planning, investments and financing analysis.
 

Develop a strong understanding of financial model architecture and process in the renewable energy sector, to ensure the big picture is always in mind:

• Understand how to envision a financial modelling process from beginning to end

• Recognise the process similarities in modelling for wind, solar or hydro projects and learn which modules can be standardised across energy sources

• Gain insights into a typical financial model development process – step-by-step – for a renewable energy model

• Benefit from a flexible timing framework to underpin the model architecture – an essential feature for projects where the dates / timing may change over time (which includes 99% of all projects)

• Capture the financial implications of delays (construction / operations) in the project time table with a structured financial modelling approach

Representing the construction phase of a renewable energy project in the Excel model:

• Discuss funding alternatives for renewable energy projects (bank debt, capital markets, government supported structures, export agencies) and how this impacts the financial modelling process

• Incorporate flexible functionality for construction delays  and/or cost over-runs

• Integrate typical renewable energy construction contracts and contingencies

Modelling of pricing and purchase agreements in renewable energy:

• Learn about off-take, prepaid and power purchase agreements (PPA)

• Integrate both PPA and spot pricing into the operational calculations

• Expand PPA analysis by having variable pricing structures, milestones, and penalties

Forecasting and modelling of production metrics:

• Understand application of different forecasting methods, the appropriate allocation of each

• Learn to integrate multiple probability exceedance profiles concurrently (e.g., P50, P90)

• Convert gross production to net production by accounting for: Operational ramp up schedules, impact of production unit (e.g. turbines) availability and efficiency, and gains and losses of production such as seasonality of renewable energy.

Financial modelling techniques for operational costs and project maintenance:

• Integrate fixed and variable costs typical of renewable energy projects

• Learn how to model flexible volume driver controls for variable costs

• Understand the important role of real vs. nominal costs (escalation) and how to integrate powerful indices

• Discuss different reserve account structures (i.e. maintenance)

Project finance modelling: Integrate project finance debt:

• Incorporate the functionality of target Debt Service Coverage Ratio repayments

• Discuss other repayment options including bullets and linear commonly used in project finance

• Incorporate various debt sizing methodologies

Review depreciation and tax calculations:

• Flexible depreciation calculations for an efficient financial model structure

• Understand how to develop flexible input structures for analysis of multiple depreciation methods

• Correct taxable income for tax calculations
   
• Tax creditor accounts for correct assignation of tax payable and paid

• Understand the working of tax loss accounts

Financial return analysis: Project return – essential financial model output:

• Inclusion of best practice net present value (NPV) and internal rate of return (IRR) calculations for the renewable energy project

• Discussion about key differences between XNPV vs. NPV functions

• Limitations and dangers in the application of the IRR function

Levelised Cost of Electricity:

• Learn the pros and cons of the LCOE metric

• Develop the calculation

Master scenario management with an efficient financial model structure:

• Work faster, better and with more insights using Corality Academy's scenario management solutions

• Use  commercial scenario analysis to assess the working of the financial model, and to sense check your logic and calculations

• Build confidence in your analysis through pre-programmed combinations of model inputs