Renewable Energy Project Finance Modeling

Course Content

Financial modeling is a critical yet often underappreciated skill, essential for success in corporate finance and business. Whether you’re launching a new venture, managing operations, or evaluating “what-if” scenarios through sensitivity analysis, the ability to create a robust financial model is indispensable. Your boss, clients, or investors will demand professional and reliable forecasts that inspire confidence. 

This course teaches participants how to develop a best-practice financial model and optimize it for both debt and equity investors for a renewable energy project finance deal.  Using  a wind project as a case study, participants learn the concepts required to develop a financial model related to wind and solar. This course will teach the participants concepts including how to size debt, how to structure the repayments and to model the output covenants in the deal, how to calculate generation curtailment and degradation, how to forecast wind and the different probabilities.  

By the end of this course, participants will have mastered the ability to build professional financial models that project future cash flows and evaluate business scenarios. You will gain expertise in performing sensitivity analysis to identify risks, applying discounted cash flow DCF models for valuation, and conducting comprehensive financial statement analysis. Additionally, you will understand the mechanics of income statements, balance sheets, and cash flow integration, allowing you to make informed business decisions. 

Renewable Energy Project Finance Modeling In-House

Course Price: Contact Us

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Renewable Energy Project Finance Modeling Live Streaming

Course Price: $3200

February,18 2025
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Renewable Energy Project Finance Modeling Online

Course Price: $900

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Online Self Paced
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SECTION OVERVIEW

PRE-COURSE (online)

 

 

 

 

  • Excel functions, formulas and shortcuts
  • Best practice modeling concepts
  • Intro to debt and equity
  • Benefits of leverage
  • Present value concepts and formulas (NPV, IRR

INTRODUCTION TO PROJECT FINANCE

 

 

 

 

  • Introduction and agenda
  • What is project finance?
  • Investment structure
  • Passthroughs and blockers (USA) versus taxable entities
  • Role of parties and contractual cashflow
  • Allocation of risk
  • Project finance project cashflows

BENEFITS OF LEVERAGE

 

 

 

  • Impact and effects of leverage
  • Weighted Average Cost of Capital (WACC)
  • Lender returns and risk appetite
  • Determinants of leverage: CADS, debt service and DSCR

DEBT SIZING AND STRUCTURING

 

 

 

 

 

  • How lenders set interest rates and DSCRs
  • Modeling debt inputs
  • Setting up the funding sheet and timing flags
  • Debt repayment types: mortgage, linear, DSCR-sculpted
  • DSCR-based debt sculpting and sizing
MODEL FAMILIARIZATION AND TIMELINE
  • Model setup and structure
  • Model checks

DEBT DRIVERS AND RATIOS

 

 

  • Interest rate day counts
  • Nominal versus effective interest rates
  • DSCR output calculations
  • Drivers of debt size

MODEL SENSITIVITIES

 

  • Sensitivities and scenarios
  • Data tables

GENERATION AND THE GRID

 

 

  • Capacity versus energy
  • Capacity factors
  • Resource forecasting
  • Probability factors (P50/P99)
  • Modeling generation
SELLING ENERGY
  • Power purchase agreements (PPAs) overview
  • PPA risk and legal concepts
  • Modeling revenue (PPA and merchant offtake)
OPERATING COSTS
  • Operating costs overview
  • O&M Agreements
CASH WATERFALL, CADS AND UNLEVERED RETURNS
  • Cashflow waterfall summary
  • Determining unlevered returns
  • Goal seeking PPA price to target return
CONSTRUCTION FUNDING
  • Construction costs overview
  • Modeling construction costs
  • Construction funding overview: interest and fees
  • Modeling construction funding
  • Construction funding circularity solutions
  • Distributions and pre-tax returns
  • Levered returns
  • Case studies: reviewing numbers and how things change
DEPRECIATION, TAXABLE INCOME, NOLs AND TAX
  • Book versus tax depreciation
  • Taxable income (Earnings Before Tax)
  • Efficient versus inefficient (self-sheltering) taxpayers
  • Net operating losses (NOLs)
  • Present value benefits of depreciation and tax
TAX REVIEW AND TAX CREDITS
  • Review of efficient versus inefficient taxpayer concepts
  • Production Tax Credit
  • Investment Tax Credit
  • Other tax credits (45Q)
  • Changes under the Inflation Reduction Act (IRA)
  • Modeling tax credits
  • Project benefits for efficient versus inefficient taxpayers
  • Levered post-tax returns
  • Tax equity introduction
INTRODUCTION TO TAX EQUITY
  • Tax equity rules
  • Common tax equity structures and terms
  • Tax equity risk and returns
  • Introduction to back leverage
  • New considerations under the Inflation Reduction Act (IRA)
MACROS AND MODEL OPTIMIZATION
  • Introduction to macros
  • Recording and editing macros: copy/paste, goal seek, data tables
  • Model optimization: what matters most
CONCLUSION / WRAP-UP
  • The role of analysts and associates — what makes you successful
  • Review / next steps

Course delivery options: 

  • Self-paced, online
    • Complete this course online at your own pace.
    • Learn more or register today online training
  • Live streaming
    • Join virtually with other professionals in a small group environment to complete this course.
    • Learn more about our live streaming training
    • See our course schedule for upcoming course date
  • In Person
    • Join at a venue with other professionals in a small group environment to complete this course.
    • Learn more about our in-person training
    • See our course schedule for upcoming course date
  • Inhouse this course can be customized to address the unique challenges that your team or organization face.

This course is designed for participants at all levels, Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems 

The course is structured in a way to suit recent graduates preparing for roles in finance can gain a competitive edge. as well as senior professionals looking to change careers or enhance their skill sets will find this course invaluable.  Anyone tasked with financial analysis or model building will acquire the tools to excel.  

Still unsure if this course is right for you? Our course information and QA sessions are a great way to learn about our training programs.  You will get an overview of the course content, delivery structure and key objectives. If you would like to download and watch the video recording of our  live session with Haydn simply click here

Pivotal180 is a global leader in teaching financial modeling and corporate finance. Unlike firms where training is a side business, we are exclusively focused on delivering world-class education. Our courses are led by senior practitioners with deep, practical transactional experience, not just theoretical knowledge. We have trained top advisors, developers, lenders, and funds worldwide, helping them master concepts like discounted cash flow (DCF) analysis, leveraged buyout models, and financial planning for business units. 

Our training approach is uniquely tailored to your needs. We offer a blended learning solution, combining instructor-led training with 12 months of online access to our comprehensive materials, including lecture slides, DCF analysis tools, and downloadable spreadsheet models. This ensures continuous learning and support long after the course is completed. 

Discounts and Promotions

Discounts include 50% off online courses for students and non-profits, a 15% group discount for bookings of three or more participants, and a 10% early bird discount for interactive public sessions booked eight weeks in advance.

  • 4 weeks before the course: Full refund (less any merchant fees). 
  • 1-4 weeks before the course: 50% refund. 
  • Less than 1 week before the course: No refund. 

 Contact Us for On-Site Pricing and Options 

Explore tailored training options for your team. Whether you need foundational courses in corporate finance or advanced lessons on initial public offering (IPO) models, our experts deliver customized training solutions to meet your needs. 

Invest in your future and master financial modeling with Pivotal180 today! 

Course Details 

  • Course Completion Certificate: Validates your expertise in financial modeling.
  • 12-Month Online Access: Access comprehensive course materials, including lecture videos, transcriptions, and interactive resources.
  • Access to Discussion Forums: Connect with instructors and peers to resolve questions and share insights.
  • Subscription Renewal: Extend your access annually for $100 per year after the first 12 months.
  • Pivotal180 Communities: Join an active network of professionals for ongoing discussions and insights.

Course Requirements: Basic Excel knowledge, a computer or laptop, and a power cord. 

Course Previews

REQUIREMENTS OF DSRA

Renewable Energy Course - Model Familiarization

What is Project Finance