Renewable Energy Project Finance & Financial Modelling - May 2024

Overview

In the global marketplace, both developed and developing economies urgently need to master the key techniques and models for financing the transformation to renewable generation while strengthening the reliability of new energy markets and systems. Today’s renewable energy frameworks and markets feature more innovative incentives to structure and analyze RE financial models to ensure that PF transactions are bankable, and conform to RE generation availability and system reliability requirements.

Today’s wind, solar, hydro, biomass, and geothermal project finance (PF) transactions require a higher level of expertise not only in programming more sophisticated and flexible financial models, but also in incorporating the latest risk mitigation and credit enhancement instruments. This online course covers both the key PF financial modeling requirements and techniques, risk analysis instruments, as well as bankability practices. The objective of this course is to provide participants with an enhanced understanding of the financial modelling and key documentation requirements of all interested parties to today’s RE PF transactions. This programme provides you with proven PF modelling techniques and transaction management techniques which will enable you to quantitatively assess risks, resolve constraints, and reach project financial closure. The practical models for wind, solar, hydro, biomass, and geothermal PF models will be demonstrated through a series of real case examples of projects and transactions from Southeast Asia, South Asia, the Middle East, Europe, and North America.

Course Sessions

1. Managing limited-recourse Project Finance (PF) transactions for Renewable Energy (RE), Power Purchase Agreements & PF documentation
2. Key requirements of RE investments: technical, management & investment requirements of reliable RE power systems & electricity markets
3. Designing RE financial models part 1: Financial model design requirements; key bankability measures & model outputs; and RE transaction work plan management
4. Designing RE financial models part 2: RE PF financial model capital expenditures and profit & loss statements for RE bankability
5. Designing RE Financial Models Part 3: Programming balance sheets; RE credit enhancements; valuation of RE credits; Corporate RE PPAs & Virtual RE PPAs; reviewing & stress-testing solar, wind, hydro, biomass & geothermal PF Models
6. Summary interactive wind/solar project financing group exercise: Evaluating an RE PF financial model for risk allocation, transaction closure and post-transaction economic regulation & tariff adjustment


Benefits of Attending

• Identify key requirements of limited-recourse Project Finance & Corporate Finance for Renewable Energy transactions, Power Purchase Agreements (PPAs), Renewable Energy Credits & PF documentation management
• Review solar, wind, hydro, biomass & geothermal PF financial model design requirements, presentation & formatting standards
• Understand all key RE investment financial analysis outputs & assumptions including: NPV; “Green” Discount Rates; Equity IRR, Project IRR, Modified IRR, Dividend-based IRR, Debt Service Coverage Ratio (DSCR); Profitability Ratios; Financial Leverage Ratios; Coverage & Credit Analysis Ratios; Liquidity Ratios, etc.
• Program financial statements, cash flows, profit & loss statements and managing international accounting standards for RE PF transactions
• Project RE PF balance sheets, valuation & monetization of RE Credits, SPV reserve accounts & release options modelling, PF refinancing, and conduct sensitivity & scenario analyses
• Introduce innovative concepts in RE debt sculpting, options analysis for RE refinancing opportunities, and PF debt sizing
• Oversee the design and review of RE PF financial models based upon your own company’s risk profile and corporate goals
• Apply clear investment incentives and RE Credit, feed-in-tariffs (FIT), and credit enhancements for bankable private investments
• Understand modelling for Corporate & Virtual RE transactions; manage and oversee successful RE project finance transactions

Testimonials

“I have been very impressed with the course content and with trainer's knowledge, experience and delivery. I am not a numbers person but trainer has enabled me to finally understand a financial model!”
- Low Carbon Contracts Company

“I am very satisfied by the depth and breadth of trainer's experience in the energy sector. His presentation slides are easily understood and he was responsive to all of our questions.”
- Adaro Power

“You will find this course useful and practical. I will recommend this course to not only the ones with experiences in this field but also the ones with no or less experiences. You will definitely gain knowledge and be able to apply it during the course.”
- Electricity Generating Authority of Thailand

“The trainer has in-depth knowledge in the subject. The discussion is very good especially most of participants are seasoned players with the industry, so a fruitful discussion indeed.”
- ib vogt