Day one – best practice financial modelling for renewable energy projects
Master proven techniques for best practice modelling resulting in better models built faster
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Learn to work with the powerful and easy to follow SMART best practice modelling methodology
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Demonstration of best-practice model architecture for a wind, solar or hydro project
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Discuss and identify good vs. bad modelling techniques using real-life examples
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Greatly increase consistency amongst your team in calculation technique and presentation
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Discuss the life-cycle of a financial model for a renewable energy project, from screening and structuring to financial close
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Learn the various structural phases of project development and the associated requirements of the financial model
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Build your understanding of the building block components, key details and challenges of a transaction model
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Understand the design flow of the model builder, learn how to know where to go next
Develop a model structure that is robust and scalable that can evolve with a typical project or transaction
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Establish key constants in the model using full scope of Excel range name function
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Build a flexible timing structure using appropriate date functions and binary flags
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Construct modularised units that form the building blocks of a professional model including (but not limited to):-
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Capital expenditure breakdown with contingencies controls
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Production calculations with multi-path optionality on time-series schedules surrounding a typical renewable energy project (including energy losses)
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Revenue build up with detailed pricing controls of a typical renewable energy project (PPA or Feed-in Tariffs)
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Operational and maintenance expenses including fixed and variable items
Understand the structure of cashflow waterfalls and the importance of ‘seniority’
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Focus on how to calculate (“CFADS”) - Cash Flow Available for Debt Service
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Learn how to layout line items in an efficient and easy to communicate way
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Understand the different types of circular references and how to avoid them
Day two – Efficient investor and debt analysis
Integrate project finance term (operational) debt
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Walk through of term debt structuring and sculpted debt repayment typical for a renewable energy project
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Discussion of linear and bullet repayment structures in project finance
Construct and analyse debt facilities for credit or investment decisions
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Learn the importance of credit ratios and their purposes in analysis
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Build commonly used ratios in banking and finance from first principles
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Extract key metrics from ratios using a range of advanced Excel functions
Develop a structured financial modelling process for the calculation of key investment returns
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Build a typical LCOE calculation and discuss its various methodologies
Take control of robust and rapid sensitivity and scenario analysis through powerful Excel techniques
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Save time and deliver rapid analysis with our approach to scenario management
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Use the scenario manager to test the model in all scenarios