Renewable Energy Project Finance Modeling

Renewable Energy Project Finance Modeling Course Content

Build a best-practice financial model from scratch for a renewable energy project finance deal. 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.

The renewable energy financial modeling course covers a broad enough set of topics such that it is also suitable for those in other project finance sectors such as power or mining.

Renewable Energy Project Finance Modeling In-House

Course Price: Contact Us

On request
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Inhouse Training
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Renewable Energy Project Finance Modeling In-Person

Course Price: Contact Us

July 22- 25
Sydney Australia
In-Person
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Renewable Energy Project Finance Modeling In-Person

Course Price: Contact Us

July 15-19
New York
In-Person
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Renewable Energy Project Finance Modeling In-Person

Course Price: Contact Us

July 15-19
New York
In-Person
More Information

Renewable Energy Project Finance Modeling In-Person

Course Price: Contact Us

July 22- 25
Sydney Australia
In-Person
More Information

Renewable Energy Project Finance Modeling Live Streaming

Course Price: $3200

May 29, 2024
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Live Streaming
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Renewable Energy Project Finance Modeling Live Streaming

Course Price: Course Full

May 28, 2024
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Live Streaming
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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.
  • Live streaming – join virtually with other professionals in a small group environment to complete this course.
  • In Person –join at a venue with other professionals in a small group environment to complete this course.
  • Inhouse – this course can be customized to address the unique challenges that your team or organization face.

Who should attend:

This course will benefit the following people:

  • Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems
  • More senior participants changing careers or looking to up their skill set
  • Students wishing to enter the project finance sector or about to start new roles

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 focused exclusively on teaching. Institutional and human capacity building is not a side business.
  • Senior practitioners with real experience lead Pivotal180 training courses
  • Our understanding is from practical transactional experience, not from reading about it or hearing about it from senior people on our team
  • We have trained top advisors, developers, lenders, and funds across the world.
  • We tailor our courses more than anyone else in the market, to meet your needs
  • Our blended solution of instructor led and online training includes 12 months of access to our online courses

Contact us for on-site or on-campus pricing and options. The cost of the online course will be credited to you if you join a public session or live streaming  within 12 months of purchase. Discounts provided off the training course prices.

  • Students and non-profits are eligible for a discount of 50% (no other discounts may be added to this).
  • Online course price for students and non profits is $450.
  • Students  are not eligible, to renew their subscription and the license will expire after 12 months
  • Other discounts
    • Group booking of 3 or more people – 15%  Price per person for online group bookings is $765
    • Early bird (interactive online and public sessions only ) if book 8 weeks before the course – 10%

Cancellation Policy for Public Courses

  • 4 weeks before the course: Full Refund*
  • 1-4 weeks before the course: 50% Refund
  • <1 week before the course: No Refund

*Refund is less any merchant fees incurred on payment

  • 12 months access to our online material, including concept videos with transcriptions, lecture slides, downloadable spreadsheet examples.
  • A complete step-by-step model walk-through, and access to discussion forums for ongoing questions’.
  • Subscription can be extended annually post the first 12 months for $100 per annum.
  • Lunch, tea & coffee at the venue (public session participants only).
  • Course completion certificate.

  • Basic knowledge of, and access to Excel
  • Computer/Laptop (two monitors is preferrable)
  • Power cord