Financial Modelling for Renewable Energy Projects (US) will give you the skills to efficiently develop, modify and analyse financial models in the renewable energy sector.
The course covers essential topics including funding mechanics, operational analysis and investment metrics and gives you a robust platform for analysis in the most sophisticated environments.
You will learn the financial modelling techniques needed to build a best practice financial model suitable for tax equity and debt structuring, investment analysis and operational scenario evaluation.
What will you take aware from this course?
An best-in-class financial model with essential applications for project analysis across diverse project categories and financing structures
Best practice rules and techniques that you can apply immediately to your renewable energy projects
A masterful understanding of essential Excel functions for professional financial modelling and powerful shortcuts
Compelling insights from recent market examples, group discussions and interactive workshops
Key Learnings
Master best practice techniques for financial modelling of renewable energy projects to achieve flexibility and robustness
Acquire specialized skills to building a flexible and powerful scenario manager to analyse your projects sensitivity to key drivers
Learn how to create a flexible tax modelling framework adaptable to regional jurisdictions
Understand and prepare flexible funding structures for analysing project finance debt and other funding sources
Is this programme for you?
If you are working in the renewable energy sector and have frequent challenges with financial models, then this training course is for you. The training course content is suitable for anyone who needs to build, review or analyse project models within the renewable energy sector, either for internal investments/operations/strategy, project finance transactions or greenfield development analysis.
Typical attendees include analysts, managers, senior managers, associate directors.
Course prerequisites
It is expected that participants have a previous exposure to Excel in a financial modelling context, and foundation knowledge of investment concepts such as NPV and cash flows.
Extend your understanding of project finance theory
To learn more about project finance theory, we recommend ‘Project finance: Concepts & Applications’ course. This one-day project finance training course covers topics from ‘What is project finance’ to examples of typical transaction structures, risk mitigation approaches and market examples.
Would a project finance modelling course be more interesting for you?
What is financial modelling and how can you learn more?
For a deeper understanding of Forvis Mazars approach to financial modelling and the Forvis Mazars Financial Modelling methodology (our globally acclaimed financial modelling methodology), we recommend reviewing and downloading some of our financial modelling tutorials from the Online Resources section of our website. Many of the free examples are inspired by content from our training courses in financial modelling and project finance, and from valuation modelling and theory.
Discuss the high-level HLBV concepts with tax equity (note: this is not an accounting course!).
Learn the skills required to develop a comprehensive financial model
Renewable energy projects often require significant financial analysis. Our hands-on financial modelling training course gives you the skills and confidence required to develop a comprehensive financial model for planning, investments and financial analysis. Focused on the US market, participants will gain a solid understanding of the common financing structures deployed in the market, including tax equity and back-leverage debt.
Develop a strong understanding of financial model architecture and typical renewable energy sector financing structures while ensuring the big picture is always in mind:
Understand how to envision a financial modelling process from beginning to end
Recognise the process similarities in modelling for wind, solar or hydro projects and learn which modules can be standardised across energy sources
Gain insights into a typical financial model development process, step-by-step, for a renewable energy model
Benefit from a flexible timing framework to underpin the model architecture –an essential feature for projects in which dates and timing may change over time (which includes 99% of all projects)
Capture the structures commonly used in the US, including industry metrics, tax equity, back-leverage debt, and pre-tax post-tax partnership flip structures
Model the construction phase of renewable energy project in Excel
Discuss funding alternatives for renewable energy projects (bank debt, sponsor equity, tax equity, capital markets) and how this impacts the financial modelling process
Incorporate flexible functionality for construction and permanent funding
Integrate typical renewable energy construction contracts and contingencies
Model pricing and purchase agreements in renewable energy
Learn about various off-take alternatives, including power purchase agreements (PPAs), hedges and renewable energy certificates (RECs) and their funding implications
Integrate both contractual and merchant structures into operational calculations
Expand PPA analysis by having variable pricing structures, milestones, and penalties
Develop forecast and model production metrics
Understand application of different forecasting methods and the appropriate allocation of each
Learn to integrate multiple probability exceedance profiles concurrently (e.g., P50, P90)
Convert gross production to net production by accounting for, among other things, operational ramp-up schedules, impact of production unit (e.g. turbines) availability and efficiency and seasonality factors
Incentives in US renewable energy projects
Learn about renewable energy certificates (RECs) and their impact on funding projects
Discuss the typical types of local and state incentives available
Calculate the investment tax credit (ITC) and production tax credit (PTC) and apply them to equity and tax equity as per the partnership agreement
Develop financial modelling techniques for operational costs and maintenance
Integrate fixed and variable costs typical of renewable energy projects
Learn how to model flexible volume driver controls for variable costs
Understand the important role of real vs. nominal costs (escalation) and how to integrate powerful indices
Discuss different reserve account structures (i.e. maintenance)
Integrate project finance debt
Incorporate the functionality of target debt service coverage ratio (DSCR) repayments
Discuss debt amortization alternatives commonly used in project finance, including bullet, sculpted, straight-line, and mortgage-style schedules
Incorporate various debt sizing methodologies, including single-factor optimization via maximum gearing or minimum DSCR
Model tax equity drivers with focus on partnership terms
Review US renewable energy tax incentives, including MACRs and tax credits
Discuss commonly used tax equity structures, such as partnership flip, sales leasebacks and inverted lease
Model a partnership flip structure taking into account, among other things, ProjectCo and HoldCo cashflow waterfalls and pre-and post-flip partnership terms
Discuss the allocation of tax attributes and liabilities between sponsor equity and tax equity
Discuss high-level HLBV concepts associated with tax equity
Conduct project return analysis and other essential financial model analysis
Build best-practice net present value (NPV) and internal rate of return (IRR) calculations for renewable energy projects at pre-and post-flip
Discuss key differences between XNPV and NPV functions
Calculate returns at ProjectCo and HoldCo to sponsor equity and tax equity participants
Incorporate master scenario management with an efficient financial model structure
Work faster, better and with more insights using our scenario management solutions
Use commercial scenario analysis to assess the working of the financial model and check the model logic and calculations
Build confidence in your analysis through pre-programmed combinations of model inputs
Optimize the project capital structure
Understand the tools available to optimize the project returns and debt amount
Calculate indicative tax equity size based on partnership
Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you. For more information on the cookies we use, please refer to our Privacy Policy.
This website cannot function properly without these cookies.
Analytical cookies help us enhance our website by collecting information on its usage.
We use marketing cookies to increase the relevancy of our advertising campaigns.
Follow us
Forvis Mazars is dedicated to exceptional financial modelling. As part of our commitment to raising the bar in financial modelling, we want to ensure the financial modelling community is kept up to date with the latest events, tips, techniques and training.
By registering for email updates from Forvis Mazars you will be kept up to date about:
