Renewable Energy Project Finance Modeling

Renewable Energy 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 case study of a wind project, 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. 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 October live session with Haydn simply click here Course delivery options: This course can be completed numerous ways, including:

  • Self-paced, online – complete this course online at your own pace.
  • Live streaming – join 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.

Why trust Pivotal180 with your professional development? There are many reasons why we stand out from other firms, but the following is what makes us particularly unique:

  • Pivotal180 is focused exclusively on teaching. Institutional and human capacity building is not a side business. It is core
  • Daniel Gross and Haydn Palliser (both Ivy League Professors) personally lead all Pivotal180 training courses
  • We have led deals. 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 the 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 includes 12 months of access to our online courses, such that your team can review concepts AND dive deeper into topics we do not have time to cover in class.

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. Our courses are not limited to best practice financial modeling in Microsoft Excel.  We are committed to explaining how the numbers align with underlying financial and engineering concepts, transaction structures, legal documentation, market conditions and risk management approaches. We don’t just teach how to build models. We teach how to transact.

Course Outcomes

Learn best practice financial modeling by doing

Understand renewable energy finance concepts and operations



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Course Previews

REQUIREMENTS OF DSRA

Renewable Energy Course - Model Familiarization

What is Project Finance

OUR BLENDED LEARNING COMBINING IN-CLASS AND ONLINE MATERIAL ENSURES WE TEACH MORE AND YOU LEARN MORE. 5 DAYS OF MATERIAL IS CONDENSED INTO 3 DAYS + ONLINE CONTENT.

Course Portfolio Region Course Delivery Start Date Price Register/Enquire
Renewable Energy Project Finance Modeling All Online Self Paced Available Now USD 900 Register
Renewable Energy Project Finance Modeling All Live Streaming May 30, 2023 FULL Contact us
Renewable Energy Project Finance Modeling All Live Streaming July 12, 2023 FULL Contact us
Renewable Energy Project Finance Modeling New York Public Sessions August, 2023 Contact Us Reserve a place
Renewable Energy Project Finance Modeling All Live Streaming September 5, 2023 Contact Us Reserve a place
Renewable Energy Project Finance Modeling All Live Streaming September 5, 2023 Contact Us Register
Renewable Energy Project Finance Modeling Toronto Public Session September 26, 2023 Contact Us Reserve a place
Renewable Energy Project Finance Modeling Toronto Public Session September 26, 2023 Contact Us Register
Renewable Energy Project Finance Modeling Sydney Australia Public Session October 2023 Contact Us Reserve a place
Renewable Energy Project Finance Modeling All Inhouse Tailored On request Contact Us Request proposal

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%
  • 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).
  • Membership to the Pivotal180 alumni network.
  • Course completion certificate.

Due to the large volume of content available, the course is suitable for all-levels – there is something for everyone.

  • 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 renewable energy sector or about to start new roles – get ahead of your competition now
Section Overview
Pre-course material
  • Course requirements and overview
  • Excel functions required
  • Shortcuts, named ranges, and data validation
  • Best practice principles
  • Best practice – flags and accounts
  • Net present value (NPV) and internal rate of return (IRR)
Project finance introduction
  • Introduction to project finance
  • Typical investment structures
  • Tax and legal implications
  • Overall timeline and cashflow relationships
  • Major contracts and risk vs reward
  • Roles of different parties in the deal
Project finance term loans
  • Impact of leverage on a deal
  • Types of lenders and their mindset
  • Appropriate discount rates and interest repayments
  • Principal repayment options (linear, mortgage, DSCR sculpted)
  • Debt service cover ratio (DSCR)
  • Sculpting and sizing debt
  • Loan life cover ratio (LLCR) and other debt ratios
  • Bullet, balloon, and mini-perm repayments
  • Cash sweeps
  • Understanding a Facility Agreement
Generation and the grid
  • Capacity versus energy
  • Capacity factors for different technologies
  • Power curves and forecasting
  • Typical losses and degradation
  • Calculating P50 and P99 generation
  • Probability analysis in determining P-factors
  • Seasonality
  • Common risk areas and ‘things that go wrong’
  • Developing the energy generation calculations
Selling energy
  • Capacity payments, energy payments and price x volume
  • Comparison of different offtakers
  • Common REC and ROC structures (coming soon)
  • Merchant tails
  • Escalation provisions in contracts
  • Scenarios and modeling a PPA with merchant tail
  • PPA contract overview
  • Alternative revenue models (coming soon)
Costs
  • Typical costs for wind and solar projects
  • Major maintenance accounts
  • Other common reserve accounts
  • Model common fixed and variable costs
  • Understanding an O&M Agreement
  • EPC costs
Waterfall and cashflow summary
  • Typical waterfall structure vs cashflow statement
  • Global differences in calculating the waterfall
  • Accounts required and the role of the administrative agent
  • Develop cashflow forecasts for P50 and P99
  • Develop data tables for scenario and sensitivity analysis
Debt service reserve account (DSRA)
  • Requirement of (and implementation of) a DSRA
  • Impact of the DSRA on debt ratios
  • The debt service facility as an alternative
  • Develop model checks to ensure compliance with loan documents
Construction phase
  • Review of an EPC term sheet
  • Completion testing required
  • Sources and uses
  • Model construction costs and understand funding challenge
  • Calculate total funding required
  • Discuss alternative drawdown orders
  • Comparison of costs to the Levelized cost of energy (LCOE)
Depreciation and tax
  • Straight line, reducing balance, life of asset, and MACRS depreciation
  • Model from EBITDA to EBT
  • Tax losses carried forward
  • Tax credits (US only)
  • What happens when tax is ahead of CADS
  • International tax considerations (i.e. WHT, tax treaties)
  • Complete post tax valuations
Tax Equity
  • Inefficient versus efficient tax payers
  • Incentives for tax equity investors, including the ITC and PTC
  • Deal and flip structure
  • Back-leverage overview
  • Tax equity sizing considerations
Returns
  • Returns required for lenders, equity, and developers
  • Cap rate compression and the value in selling your project, calculating terminal values
  • Back-leverage and holdco debt to increase returns (and risk)
  • Typical valuation comparables
Core outputs
  • Comparison of accounting and tax depreciation
  • Developing an income statement and balance sheet
  • Converting quarterly calculations to annual outputs
  • Calculating working capital
  • Add deferred taxes to your model
  • Outputs required for an investment decision
Modeling quality checks
  • Model Checks required
  • How do I review a model?
Optimizing a deal model
  • Solve the price required to achieve a hurdle rate
  • Size the debt required in operations and construction
  • Introduction to VBA for project finance
  • Running scenarios with VBA
  • Simplifying alternatives to avoid VBA

Pre-requisites

Basic knowledge of Excel only Two monitors is preferrable but not essential.

Equipment Required

Area Items Needed
Online Course

Computer, 2 screens preferable, Microsoft Excel

Public Session

Laptop & Power cord

Public courses run from 9am – 5.30pm at a location to be confirmed post registration Live streaming are 2.5 hour live sessions for 1-2 days a week over a  4-5 week period Live streaming classes start at 11am New York time, so are accessible to most people in the Americas, Africa, and Europe Online course has over 26 hours of content and will take about 40 hours to complete if you do it from start to finish

Range Amount
>4 weeks before the course Full Refund
1-4 weeks before the course 50% Refund
<1 week before the course No Refund

Get in touch to discuss our instructor-led training, online courses or advisory services