Project Finance Modeling For Renewable Energy

Learn Financial Modeling for wind and solar projects

What you'll learn

How to build project finance model from scratch in excel for wind and solar projects;

Learn how renewable energy projects get developed and financed;

How to create best practice macro’s and Excel VBA codes to break circularities;

Learn how to size debt based on multiple covenants for wind and solar projects;

How to model Debt Service Reserve Account;

How to model unlevered project returns and blended equity returns;

Learn to integrate multiple probability exceedance generation profiles (P50, P99) into the financial model;

Learn basics of GP/LP flip structures and tax equity for project financing;

Gain insights into financial model development process, step-by-step – for a renewable energy model.

Requirements

You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV, IRR and cash flows.

Description

Project Finance Modeling for Renewable Energy course will give you the skills to develop and analyze financial models for wind and solar projects. The course covers essential topics including debt sizing and funding, wind and solar project operations, and investment returns, and will provide you with a robust financial modeling skillset for analysis of renewable projects in the most sophisticated environments.In an online environment you will go from a blank Excel workbook to a financial model suitable for investment analysis, debt structuring and operational scenario evaluation. This course will provide step-by-step instructions on how to build financial model suitable for analyzing wind and solar projects.What this course is about?Project finance models for renewable energy are used to assess the risk-reward of lending to and investing in renewable project (wind and solar). The project's debt capacity, investment returns and financial feasibility depend on expected future cash flows generated by the renewable energy project itself and a financial model is built to analyze this.In the Project Finance Modeling for Renewable Energy course we will model complex wind and solar project finance transactions from scratch in excel.You will learn about:- How to build a project finance model from scratch in excel for wind and solar projects;- Learn how renewable energy projects get developed and financed;- How to create best practice macro’s and Excel VBA codes to break circularities;- Learn how to size debt based on multiple covenants for wind and solar projects;- How to model Debt Service Reserve Account;- How to model unlevered project returns and blended equity returns;- Learn to integrate multiple probability exceedance generation profiles (P50, P99) into the financial model;- Learn basics of GP/LP flip structures and tax equity for project financing;- Gain insights into financial model development process, step-by-step – for a renewable energy model;- Optimize the model to achieve the requirements of lenders and investors.Why you should enroll in the Project Finance Modeling for Renewable Energy course? Realistic project finance training - The Project Finance Modeling for Renewable Energy course includes over 10 hours of instructor-led video content to learn at your own pace. After completing this course you will be able to build complex, real-life project finance model for wind and solar projects.Affordability - a similar course, which provides realistic project finance modeling training will cost you anywhere from US$1000 to US$3,000 per course.Learn anytime and anywhere - The Project Finance Modeling course is 100% online so you can learn the modeling when it is convenient for you.How does it work?The course length is over 10 hours. First, we will review the basics of wind and solar projects development, so we understand all essential components of project finance transactions in the context of renewable energy.Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in excel. We will begin financial modeling in the third part, where we will build a financial model for wind and solar projects for the case when SPV pays taxes. And, finally, In the fourth part, we will review the peculiarities of the US renewable projects and build a financial model that takes into account the tax credits available in the US, and introduce to the new source of financing called tax equity. Is this course for you?Yes, if you need to build, review or analyse project finance models within the renewable energy sectors. Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.This course prerequisites:You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV and cash flows.

Overview

Section 1: Introduction to the Course

Lecture 1 Intro to the Course

Section 2: Part 1 - Basics of Wind and Solar Projects Development

Lecture 2 Renewable Energy Overview

Lecture 3 Wind and Solar Equipment

Lecture 4 Energy Generation

Lecture 5 Wind and Solar Resources

Lecture 6 P-Value, Probability and Excel

Lecture 7 Selling Energy under the PPA

Lecture 8 Risk Allocation under the PPA

Lecture 9 PPA terms

Lecture 10 Construction Contracts in Renewable Energy Development

Lecture 11 Construction Risks

Lecture 12 Operating costs

Lecture 13 Financing of Renewable Energy Project

Lecture 14 Role of the SPV in Financing

Lecture 15 Sources of Financing for Renewable Energy Projects

Lecture 16 Loan Agreement

Lecture 17 Debt Sizing

Lecture 18 Debt Sizing Example

Lecture 19 Control Accounts & Cash Flow Waterfall

Lecture 20 Covenants in Project Finance

Section 3: Part 2 - Excel Refresher

Lecture 21 Calculations In Blocks

Lecture 22 Paste Forward Link

Lecture 23 Daisy Chains and Link Formatting

Lecture 24 Using Placeholders

Lecture 25 Excel Shortcut Keys

Lecture 26 Understanding Anchoring

Lecture 27 Understanding Dates

Lecture 28 Understanding IF Statements

Lecture 29 Understanding SUMIF function

Lecture 30 Understanding LOOKUP function

Lecture 31 Understanding MIN MAX functions

Section 4: Part 3 - Financial Modeling For Wind and Solar Projects (SPV pays taxes)

Lecture 32 Introduction to the Financial Model and Case Study

Lecture 33 Timing and Flags

Lecture 34 Modeling Dates

Lecture 35 Modeling Flags 1

Lecture 36 Modeling Flags 2

Lecture 37 Modeling Flags 3

Section 5: Modeling Energy Generation

Lecture 38 Energy Generation Recap

Lecture 39 Modeling Energy Generation

Lecture 40 Modeling Energy Generation with Seasonality Factor

Section 6: Selling Energy

Lecture 41 Selling Energy Recap

Lecture 42 Modelling Revenue

Section 7: Operating Costs

Lecture 43 Operating Costs Recap

Lecture 44 Modeling Operating Costs

Section 8: Working Capital

Lecture 45 Understanding Working Capital

Lecture 46 Modeling Working Capital

Section 9: PP&E and Depreciation

Lecture 47 Understanding PP&E and Depreciation

Lecture 48 Modeling PP& and Depreciation

Section 10: Tax Expense and Tax Paid

Lecture 49 Understanding Taxes

Lecture 50 Net Operating Losses

Lecture 51 Modeling Taxes 1

Lecture 52 Modeling Taxes 2

Section 11: Equity, Dividends and Cash

Lecture 53 Understanding Equity

Lecture 54 Modeling Equity, Dividends and Cash - 1

Lecture 55 Modeling Equity, Dividends and Cash - 2

Section 12: Sizing the Debt for Wind and Solar Projects

Lecture 56 Debt Sizing for Renewable Projects

Lecture 57 Sizing the Debt -1

Lecture 58 Sizing the Debt - 2

Section 13: Modeling Construction Phase

Lecture 59 Construction Timing

Lecture 60 Modeling Construction Costs

Lecture 61 Understanding Construction Funding

Lecture 62 Construction Funding Overview

Lecture 63 Modeling Construction Funding 1

Lecture 64 Modeling Construction Funding 2

Lecture 65 Financing costs 1

Lecture 66 Financing costs 2

Lecture 67 Linking Funding Sheet to Operations 1

Lecture 68 Linking Funding Sheet to Operations 2

Section 14: Term Loan

Lecture 69 Modeling Term Loan

Section 15: Project Finance Debt Ratios

Lecture 70 Understanding DSCR

Lecture 71 Modeling DSCR

Lecture 72 Understanding LLCR & PLCR

Lecture 73 Modeling LLCR

Lecture 74 Modeling LLCR based on effective interest rate

Section 16: Debt Service Reserve Account ("DSRA")

Lecture 75 Understanding DRSA - 1

Lecture 76 Understanding DSRA - 2

Lecture 77 Modeling DSRA 1

Lecture 78 Modeling DSRA 2

Lecture 79 Modeling DSRA 3

Lecture 80 Modeling DSRA 4

Section 17: Shareholder Loan

Lecture 81 Understanding Shareholder Loan - 1

Lecture 82 Understanding Shareholder Loan - 2

Lecture 83 Modeling Shareholder Loan - 1

Lecture 84 Modeling Shareholder Loan - 2

Lecture 85 Modeling Shareholder Loan - 3

Section 18: Project Returns

Lecture 86 Project Returns Overview

Lecture 87 Modeling Project Returns - 1

Lecture 88 Modeling Project Returns - 2

Lecture 89 Project Optimization

Section 19: Model Checks and Scenario Manager

Lecture 90 Modeling Checks

Lecture 91 Modeling Scenario Manager

Lecture 92 Construction Funding Macro

Section 20: Summary Sheet

Lecture 93 Summary

Section 21: Part - 4 Financial Modeling For Wind and Solar in US

Lecture 94 Investment Structuring

Lecture 95 Tax Efficiency

Lecture 96 Production Tax Credits

Lecture 97 Investment Tax Credit

Lecture 98 Modeling PTC

Lecture 99 Modeling ITC

Lecture 100 Modeling Tax Benefits for Efficient Taxpayer

Lecture 101 Modeling Tax Benefits for Inefficient Taxpayer

Lecture 102 NPV of Tax Benefits

Lecture 103 Modeling Returns of the Efficient and Inefficient Taxpayer

Lecture 104 Understanding Tax Equity - 1

Lecture 105 Understanding Tax Equity - 2

Lecture 106 Intro into Tax Equity Modeling

Lecture 107 Tax Equity Modeling 1 - Sizing Tax Equity

Lecture 108 Tax Equity Modeling 2 - Sizing Back Leverage Debt

Lecture 109 Tax Equity Modeling 3 - Construction Funding

Lecture 110 Tax Equity Modeling 4 - Sponsor's Tax Credits and EBT

Lecture 111 Tax Equity Modeling 5 - Sponsor's Tax Liability

Lecture 112 Tax Equity Modeling 6 - Sponsor IRR

Lecture 113 Tax Equity Modeling 7 - Summary

Section 22: Part 5 - Final Task

Lecture 114 Final Task

Lecture 115 Final Task - Instructions

Typical students include finance students, recent graduates, analysts, managers, senior managers, associate directors, advisers, financiers and CFOs from financial and infrastructure companies.