2020 Quarter 2 Newsletter
Thanks for your interest in Pivotal180!
We are excited to have you as part of our community. We hope our knowledge portal is of value to you. We plan to continue to add content over the coming year, so do stay in touch!
Online Courses – Update
NEW:- Incorporating Randomness into Renewable Energy Models
When building financial forecasts for intermittent renewable energy projects, it is common for analysts to use a single value for the net energy generation assumption for the entire duration of the project. For a wind farm, an equity investor may choose to use a P50 assumption for the base case and then explore downside sensitivities by changing the assumption to P75 or P90.
Once that wind farm gets built, however, the actual performance will not be a single constant for the life of the project. Net generation will vary from year to year, falling within a long-term probability distribution function. The performance in any given year can be thought of as a statistical sample drawn from a forecasted population distribution. So if we want our model to approximate reality – or a range of potential realities – it is a best practice to add a stochastic scenario in which the net generation varies from period to period, based upon random sampling.
Pivotal180 is adding a series of videos to our Renewable Energy Project Finance Modeling Course covering concepts of P-values, one-year vs. long-term distributions, NORMAL functions in Excel, and techniques for including random variation into a financial model. We are also excited to be releasing a video explaining the Measure, Correlate, Predict (MCP) process, which is the foundation of most wind studies.
NEW:- Live-Streamed Courses
We have postponed all of our in-person public courses until health experts determine that it is safe to convene groups for such purposes.then. In the meantime we our new offering online live streamed public courses.
The live-streamed courses are 100% remote but provide real time interaction with instructors and fellow students. Each course includes:
Start dates for these sessions are available on our website.
We also offer more personalized workshops by tailoring content to the specific needs of companies or individuals. These programs can be offered for a single session or for multiple sessions extended across several days or weeks. Please contact us at email@example.com or via this link if you would like to discuss in more detail.
Lessons added to Renewable Energy Course
Added since March 1
Chapter 2 – Term Loans
Lessons on Loan Agreements
Chapter 3 – Generation
Chapter 6 – Operating Costs
Chapter 7 – Construction Costs
Chapter 8 – Cash Waterfall and CADS
Chapter 9 – Output Data Tables a
Chapter 11 – Construction Funding
Chapter 12 – Tax and Depreciation
Chapter 15 – 3-way Statements
Chapter 16 – Accounts Payable and Receivable
Chapter 17 – Debt Service Reserve Account (DSRA)
Lessons Added to Tax EquityAdded Since Launch
Summary of Tax Capital Accounts
Quarterly Downloadable Version of a Tax Equity Model with pdf Description of Changes from Annual Model.
Welcome Our New Team Member – Florentina
Emerging Markets Specialist
Florentina Mutafungwa is a specialist in government advisory and capacity building in emerging markets. Based in Dar es Salaam, she designs and implements consulting and training programs within the energy and infrastructure sectors in Africa.
Upcoming free resources
Scenario &Sensitivity Blog Part 2. New Sample videos of our current courses.
Related Blog Posts
Scenario_Sensitivity Blog Post Part 1 – Haydn
PROJECT FINANCE MODELS: SCENARIOS AND SENSITIVITIES – PART 1 It’s that time of year when many of you graduates in the Northern Hemisphere are starting jobs in project finance positions at investors, lenders, developers, or utilities. Starting a new job can be daunting, and it may be even more so this year as you will…
Why I needed to know how to build a financial model- Alison
Why I needed to know how to build a financial model. In Haydn’s blog he rued what he did not know about financial modelling for project finance when he first started. For me as an accountant, I look back and wish I had known about financial modeling and understood how impactful it could be. In…
Managing a financial modeler here is some advice – Haydn
Managing a financial modeler….here is some advice You’ve just become a decent financial modeler, and then it’s over! You become responsible for other modelers, perhaps even needing to hire a team. Whether you have been a financial modeler or not, managing technical professionals can be challenging. And a lot weighs on the financial model being…
If Only I Knew – Financial Modeling Lessons – Haydn
If only I knew, lessons from a (slightly) grey-haired project finance advisor. I love project finance. Maybe it’s the engineer in me, but the combination of a physical asset and a highly-structured and complex investment excites me. Add to that the importance of infrastructure and energy to our daily lives, and I am hooked. Well,…
LIBOR’s expiry warning: your existing borrowing costs may rise!
After 30-years of benchmark dominance, LIBOR will no longer be published by the end of 2021. What will happen to your loan? What can you do about it? By: Michael Woods The London Interbank Offer Rate (LIBOR) stands as the basis of pricing for thousands of project finance loans across the world. The rate won’t…