Twicet

Financial Modelling for Renewables is an online training course that examines all areas of project finance and financial modelling for renewable energy projects. Delegates will learn the necessary tools for successful modelling and, through practical exercises, apply these techniques to realistic examples. The course is intended to provide delegates with a modelling toolbox allowing them to produce renewables models which can be developed seamlessly from feasibility stage through to financial close.

Schedule: The course takes place on the following alternate days over three weeks comprising two hours teaching on each day from 9.00am to 11.00am (UK time).

TBC

The course also includes course material and online interaction with the trainer.

Please note: The course is recorded so any sessions that cannot be attended can be taken at a later time.

	TBC
	Duration: 18 Hours
	Location: Online
	Trainer: Penelope Lynch
	Course fee: £2490 + VAT – Register online

Course Outline

Introduction

+ What are the special features of renewables cashflow modelling vs 'classic' project finance?

The Renewables Project Finance Model

+ What is the function of the model?
+ What are the key drivers of model structure and good practice?
+ What are key characteristics of a good model?

Model Design

+ How do we design our model to achieve the ideal outcome?
+ How can model structure minimise the risk of spreadsheet error?
+ Key principles and golden 'rules'

Structure and Layout of the Model

+ Introduction to two illustrative project finance renewables models
+ What sheets do we need and how do we organise them?
+ How do we layout calculations within the sheets?

Inflation

+ Why model inflation?
+ How do we model inflation?
+ Review illustrative indexation calculations

Data

+ Getting information into the model simply and safely
+ Review illustrative data sections

Construction Costs

+ Modelling long & short construction periods
+ Modelling overlap of construction and operating period
+ Review illustrative capex sections

Practical Exercise 1

Using model skeleton with basic data, build construction cost calculations, controlling timings, applying inflation and using switches to control options

The Operations Section

+ Calculating revenues, modelling PPAs & CFDs
+ Modelling operating profiles and seasonality
+ Review illustrative operations calculations

The Cash Flow Summary - Telling the Story

+ Start to finish, top to bottom, the story of the project

Practical Exercise 2

Using the model from practical 1, complete the operations sheet & begin populating the net cashflow summary

Circularity in the Model

+ Are there circular calculations in project finance?
+ How should we handle them?
+ The re-calc macro

Practical Exercise 3

Add a simple re-calc macro to the model

Funding Calculations

+ Modelling Equity & Debt
+ Drawdowns; Interest; Repayment; Sculpting; Cash Sweeps; DSRA
+ Review illustrative funding calculations

Practical Exercise 4

Add a simple finance section to the model

Project Finance Cover Factors

+ What are the key Project Finance Cover Factors
+ How do we model them?
+ What do they mean?
+ Review of illustrative cover factor calculations

Tax and Profit & Loss Calculations in the Model

+ What are the basic elements of tax & P&L calculations in the model?
+ How do we model tax without circularity?
+ Review of illustrative tax and P&L calculations

Balance Sheet

+ Making it balance
+ Review of illustrative balance sheet calculations

Developing the Model

+ Adding monthly funding calculations in a semi?annual timeline
+ Review of illustrative monthly and quarterly calculations

Practical Exercise 5

Add monthly capex and funding calculations to the model

Cash Balances

+ Project cash account; Debt Service Reserve Account; Major Maintenance Account
+ Review of illustrative cash account calculations

Investor Returns

+ Metrics, NPV & Investor IRR ? maths, modelling, meaning
+ Equity return waterfall
+ Review of illustrative Investor return calculations

Valuation and Exit

+ How do we estimate project sale value?
+ How do we model exit options?
+ Review of illustrative project valuation calculations

Practical Exercise 6

Add simple EBITDA & DCF valuation and investor return calculations to the model

Summary Sheets

+ One page key inputs and results summary sheet
+ Annual summaries
+ Getting the model to tell you what it's doing
+ Review of illustrative summary sheets

Scenario and Sensitivity Analysis with the Model

+ Why sensitivity analysis?
+ Evaluating alternative base cases
+ How do we reduce error and keep track of sensitivities?
+ Review of illustrative sensitivity tables

Practical Exercise 7

Add a sensitivity table to the model

Checking the Model

+ How to check your model

Working with Other People's Models

+ Navigating, validating, amending & running models written by someone else

Storing Results and Recording Changes

+ Keeping track of data changes
+ Storing results and tracking model changes

Practical Exercise 8

Add a 'stored results' library sheet to the model and record a simple macro to operate it