Financial Modelling for Power Generation Projects will give you the skills to efficiently develop, modify and analyse financial models for projects in the power generation sector. The course covers essential topics including funding mechanics, operational analysis and investment metrics. It gives you a robust platform for analysis in a sophisticated environment.
You will learn the financial modelling techniques needed to build a best practice financial model suitable for debt structuring, investment analysis and operational scenario evaluation.
Project finance modelling for power projects
This hands-on course will clarify how project finance bankers, investors and external parties will analyse your project, and provide a deep understanding of the flexibility required in scenario analysis by a range of audiences.
Financial Modelling for Power Generation Projects will enable you to
Master best practice techniques for financial modelling of power generation projects to achieve flexibility and robustness
Build a flexible and powerful scenario manager to analyse your project’s sensitivity to key drivers
Prepare trusted analysis of commercial outputs tailored to investors and financiers with a focus on valuation and risk
Understand a flexible framework for tax modelling, adaptable to regional jurisdictions
Develop flexible funding structures for analysis of project finance debt and other funding sources
Do you work with project finance modelling in the power generation sector?
If you need to build, review or analyse financial models for project analysis or project financing in the power generation sector, this course is for you. Typical attendees include analysts, financial managers from project companies, advisors and financiers, in particular project finance modelling analysts.
Required knowledge: Excel and power generation industry awareness
It is expected that you will have previous exposure to Excel in a financial modelling context. A foundational knowledge of investment concepts such as internal rate of return (IRR) and cash flows is also required.
Interested in project finance theory?
Mazars Financial Modelling includes the course ‘Project Finance: Concepts and Applications’ which covers essential foundation knowledge for professionals starting out in a project finance career.
Best practice courses in financial modelling
For a complete list of Mazars Financial Modelling courses and workshops in financial modelling, project finance modelling and valuations analysis and modelling, go to the training schedule.
The training schedule provides a comprehensive list of upcoming project finance and financial modelling courses in your region, featuring popular locations such as Sydney, London, New York and Toronto.
The Online Resources section of our website contains a substantial collection of free downloads and tutorials in financial modelling, webinars and blogs. Covering essential topics include NPV modelling and analysis, debt service reserve accounts, terminal value modelling and Excel shortcuts PDF Download– you will have hours and hours of free learning.
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Course Outline
Skills for sophisticated analysis of traditional thermal power projects
Financial modelling of traditional thermal power projects requires a robust and flexible approach to developing analytical functionality that addresses the needs of sponsors, investors, operators and project finance banks.
This practical training course in financial modelling includes workshop modules aimed at equipping participants with stronger skills for sophisticated analysis of traditional thermal power projects.
Develop a strong understanding of financial model architecture and process in power generation sector, to ensure the big picture is always in mind:
Understand how to envision a financial modelling process from beginning to end
Gain insights into a typical financial model development process – step-by-step – for a traditional thermal power model
benefit from a flexible timing framework to underpin the model architecture – an essential feature for projects where the dates/timing may change over time
Master the art of consistency amongst your team in calculation techniques and presentation of outputs to drive trust and reliability in analysis and comparable analysis
Representing the construction phase of a power plant in the Excel model
Discuss funding alternatives for power station projects (bank debt, capital markets, Government supported structures) and how this impacts the financial modelling process
Incorporate flexible functionality for construction delays and/or cost over-runs
Integrate typical power plant construction contracts and contingencies
Modelling of pricing and purchase agreements in power generation
Model typical off-take agreements and power purchase agreements (“PPA’s”)
Model both capacity based and energy based PPA agreements
Integrate both PPA and spot pricing into the operational calculations
Develop feedstock cost modelling including feedstock stockpiling / storage
Forecasting and modelling of production metrics
Understand application of different forecasting methods and appropriate application of each
Conversions of gross to net production
Model conversion of energy from fuel source (calorific content), to energy produced (heat rate and efficiency)
Plant availabilities including outages (forced, unforced)
Considerations of plant degradation, output levels improvements due to major maintenance programs
Financial modelling techniques for operational costs and project maintenance
Integrate fixed and variable costs typical of power generation projects
Learn how to model flexible volume drive controls for variable costs
Understand the important role of real vs. nominal costs (escalation) and how to integrate powerful indices
Learn how to model major maintenance reserving
Integrate project finance debt and importance of 'seniority' of payments
Develop comprehensive debt modelling mechanics, with a specific application of DSCR sculpted repayment using first principle calculation for full transparency
Incorporate the functionality of target Debt Service Coverage Ratio repayments
Review other repayment options including bullets and linear commonly used in project finance
Discuss debt sizing methodologies
Discuss tariff optimisation and learn how to incorporate into the model
Cash Flow Available for Debt Service (“CFADS”) – expand the financial model to incorporate this fundamental line item for project finance analysis.
Build transparent calculation steps to showcase the Cashflow Waterfall principles and cashflow available at every significant step
Understand the risk of Circular References in Excel and how these can best be avoided using clear logic and some simple rules
Review depreciation and tax calculations
Flexible depreciation calculations for an efficient financial model structure
Understand how to develop flexible input structures for analysis of multiple depreciation methods
Tax creditor accounts for correct assignation of tax payable and paid
Understand the working of tax loss accounts
Financial return and Project return analysis
Inclusion of best practice net present value (NPV) and internal rate of return (IRR) calculations for the power generation project
Discussion about key differences between XPNV vs. NPV functions
Limitations and dangers in the application of the IRR function
Master Scenario Management with an efficient financial model structure
Work faster, better and with more insights using the Mazars Financial Modelling methodology Scenario Management solutions
Use commercial scenario analysis to assess the working of the financial model, and to sense check your logic and calculations
Build confidence in your analysis through pre-programmed combinations of model inputs
Review how the scenario manager can be used in contract negotiations
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