The objective of this program is to provide knowledge and practical experience about the creation of comprehensive and complex renewables models of wind, solar, hydro, biomass, etc used in financial planning, structuring and fundraising purposes. The participants will gain insights into the step-by-step process of creating financial models, identify risk, put in checks & audits and analyzing the same.

The course equips you with a comprehension of the various concepts in the renewable energy sector. Our curriculum offers in-depth knowledge of the smart financial models prevalent in the renewable energy industry thereby enabling the participants to be actively involved in the renewables energy industry on the international level.

Overview

The course will enable the participants to prepare detailed financial models for your projects in the field of renewable energy and helps them to identify all the cash flows, finance, and performance indicators. The course is designed to ensure that complex concepts are delivered to participants in a simple way. This will assist in their current role and business to analyze, invest and fundraising of renewables projects

Who should attend

Anyone who wants to enhance their expertise in financial modeling for renewables should attend this course, which includes:

Middle to senior managers in the renewable industry
All professionals who want to deal or currently deal with the project financing of renewables projects
Consultants, advisors and other professionals who wish to improve their modeling skills
Middle to senior managers from investment banking, banks, financial institution,
Finance directors, development directors, directors of strategy;
Functional/department heads and decision-making professionals;
Business owners, entrepreneurs, investors, and consultants;
Any other professionals who want to upgrade their skills in the renewable energy field.

Methodology

Non-theoretical methodology, which includes interactive discussions, case studies, interactive games, and assignments to understand the concepts and their applicability.

Trainer

We carefully choose all our trainers who possess rich and vast experience in the renewables sector. The course will be conducted by an experienced training consultant having more than 18 years of industry experience with some of the world’s leading financial institutions, specializing in investment and fundraising for wind, solar, hydro, biomass, waste-to-energy, geothermal etc projects.

Module – 1

Financial Modelling for Renewables: Introduction

Introduction to the renewable energy industry
Importance of financial modeling
Analysis of project information
Steps for creating financial models
Proper presentation of various sheets and setting up the model input dashboard

Module – 2

Preparation of Layout and timing related information of Renewables Projects

Comparison of modeling process for solar, hydro, and wind projects
Discussion on the best industry practices and standard for layouts and structure
Preparation of the standard model template to ensure consistency between worksheets
Develop quarterly and annual flags
Other key flags like construction period, operational period, debt period, etc

Module – 3

Key Drivers of Renewables projects

Resource assessment and capacity factor
Development and construction cost
Electricity pricing like PPA, Feed-In Tariff, merchant etc
Regular O& M Costs
Financing ratio, Operating costs, seasonality

Module – 4

Formulating Pricing and Purchase Agreements for Renewable Energy

Understand off-take, pre-paid, and power purchase agreements (PPAs) are.
Building renewable energy certificates (RECs) and their impact
How to combine merchant pricing and PPA in operational estimates

Module – 5

Building Revenues for Renewables Projects

Calculation of fundamental revenue
Finalize assumptions using resource data like irradiation, wind speeds, and hydro volumes
Analyze the data of P99, P95, P90 etc
Seasonality modifications in the revenue
Building various PPA and merchant sales pricing

Module – 6

Building Cost for Renewable Energy

Build operating and maintenance costs in renewable energy plants
Analyze and build fixed and variable maintenance costs for solar, wind and hydro projects etc

Module – 7

Model CAPEX for Renewable Energy

Funding requirement for wind, solar, hydro, biomass etc
Calculation of fund requirement and various resources of funding and source to service the same
Calculation of Interest During Construction(IDC)
Different ways to model the development and construction costs
Schedule of amortization of intangible assets
Tax and accounting depreciation, if any

Module – 8

Building Financing for Renewable Energy

Various financing options available for renewable projects
Modeling of debt financing and drawdowns
Financing fees and interest during construction
Review of refinancing in senior debt - construction debt to the term loan
Repayment based on cashflows and various debt covenants
Various types of repayment structure like an annuity, sculpted, bullet, etc

Module – 9

Credit Spreads and Financial Return Analysis for Renewable Energy

Studying the concept of credit spreads and debt IRR.
Calculation of implied default probability with various credit spreads and debt tenors
Causes for formulating credit spreads

Module – 10

Waterfall mechanism for Renewable Projects

Waterfall mechanism to calculate the debt requirement and cash flow available for debt service as per
Repayment based on the project finance requirement like arranger fees, interest, annual fees, repayment etc
Preparation of DSRA and other cash reserves in the waterfall mechanism
Calculation of the cash flow available to equity shareholders
Dividend calculation with its limitations including lender restriction etc

Module – 11

Re-financing of the renewable projects

Using various financing schemes
Re-financing of on-shore & offshore wind, geothermal, and hydropower projects
How to evaluate the project for re-financing and points to consider
Analysis of various project and financial parameters for re-financing

Module – 12

Integration of income statement, balance sheet, and cash flow statement

Industry practices on handling exceptions
Integration of Cash Flows, Income Statement and Balance Sheet as per best renewable industry practices

Module – 13

Risk and sensitivity analysis of Renewable Energy

Reviewing the risks in renewable power projects
Studying risks by employing break-even, sensitivity, and scenario analyses
Credit analysis in renewable financial projects
How to take up adjustments based on the risk
Stress testing on a model with P50, P90, and P99 data, delays, financing costs etc

Module – 14

How to Analyze the Performance of Renewable Projects

Assessing the project using economic and financial analysis tools
Calculation of LCOE of wind, solar and hydro projects etc
Key Factors impacting the performance of the renewable projects of wind, solar and hydro facilities
Loans covenant analysis like DSCR, LLCR, PLCR etc
Calculation of Equity and Project IRR and the impact of critical variables on them
to determine acceptable resource risk

Module – 15

How to do model review and control

How to insert various test and checks in the model
Identify common model errors and fix them
Best industry practices

Module – 16

Valuation of Renewable Energy projects

Determine the cost of equity and various risk impacting the same
Determining the cashflows for valuations
Analyzing the capital structure of the projects and its impact on valuation
Discussion of multiple methods of valuation and framework for choosing the most appropriate method for renewables projects
Discussion on the mechanical complications in the formulation of financial models
Studying the modeling difficulties of financial models for renewable energy

If you need further information, please visit www.riverstonetraining.com.sg or send mail at info@riverstonetraining.com.sg or whatsapp at +65 9730 4250

Riverstone – Corporate Traininghttps://www.riverstonetraining.com.sg

Financial Modelling & Analysis of Renewables Project