Project Finance Modeling for Renewable Energy

Learn Financial Modeling for wind and solar projects

4.63 (470 reviews)
Udemy
platform
English
language
Financial Modeling & Ana
category
instructor
1,334
students
15.5 hours
content
Mar 2024
last update
$159.99
regular price

What you will learn

How to build project finance model from scratch in excel for wind and solar projects;

Learn how renewable energy projects get developed and financed;

How to create best practice macro’s and Excel VBA codes to break circularities;

Learn how to size debt based on multiple covenants for wind and solar projects;

How to model Debt Service Reserve Account;

How to model unlevered project returns and blended equity returns;

Learn to integrate multiple probability exceedance generation profiles (P50, P99) into the financial model;

Learn basics of GP/LP flip structures and tax equity for project financing;

Gain insights into financial model development process, step-by-step – for a renewable energy model.

Description

Project Finance Modeling for Renewable Energy course will give you the skills to develop and analyze financial models for wind and solar projects. The course covers essential topics including debt sizing and funding, wind and solar project operations, and investment returns, and will provide you with a robust financial modeling skillset for analysis of renewable projects in the most sophisticated environments.

In an online environment you will go from a blank Excel workbook to a financial model suitable for investment analysis, debt structuring and operational scenario evaluation. This course will provide step-by-step instructions on how to build financial model suitable for analyzing wind and solar projects.


What this course is about?

Project finance models for renewable energy are used to assess the risk-reward of lending to and investing in renewable project (wind and solar). The project's debt capacity, investment returns and financial feasibility depend on expected future cash flows generated by the renewable energy project itself and a financial model is built to analyze this.


In the Project Finance Modeling for Renewable Energy course we will model complex wind and solar project finance transactions from scratch in excel.

You will learn about:

- How to build a project finance model from scratch in excel for wind and solar projects;

- Learn how renewable energy projects get developed and financed;

- How to create best practice macro’s and Excel VBA codes to break circularities;

- Learn how to size debt based on multiple covenants for wind and solar projects;

- How to model Debt Service Reserve Account;

- How to model unlevered project returns and blended equity returns;

- Learn to integrate multiple probability exceedance generation profiles (P50, P99) into the financial model;

- Learn basics of GP/LP flip structures and tax equity for project financing;

- Gain insights into financial model development process, step-by-step – for a renewable energy model;

- Optimize the model to achieve the requirements of lenders and investors.


Why you should enroll in the Project Finance Modeling for Renewable Energy course?


Realistic project finance training - The Project Finance Modeling for Renewable Energy course includes over 10 hours of instructor-led video content to learn at your own pace. After completing this course you will be able to build complex, real-life project finance model for wind and solar projects.


Affordability - a similar course, which provides realistic project finance modeling training will cost you anywhere from US$1000 to US$3,000 per course.


Learn anytime and anywhere - The Project Finance Modeling course is 100% online so you can learn the modeling when it is convenient for you.


How does it work?

The course length is over 10 hours.

First, we will review the basics of wind and solar projects development, so we understand all essential components of project finance transactions in the context of renewable energy.

Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in excel.

We will begin financial modeling in the third part, where we will build a financial model for wind and solar projects for the case when SPV pays taxes.

And, finally, In the fourth part, we will review the peculiarities of the US renewable projects and build a financial model that takes into account the tax credits available in the US, and introduce to the new source of financing called tax equity.


Is this course for you?

Yes, if you need to build, review or analyse project finance models within the renewable energy sectors. Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.


This course prerequisites:

You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV and cash flows.


Content

Introduction to the Course

Intro to the Course

Part 1 - Basics of Wind and Solar Projects Development

Renewable Energy Overview
Wind and Solar Equipment
Energy Generation
Wind and Solar Resources
Selling Energy under the PPA
Risk Allocation under the PPA
PPA terms
Construction Contracts in Renewable Energy Development
Construction Risks
Operating costs
Financing of Renewable Energy Project
Role of the SPV in Financing
Sources of Financing for Renewable Energy Projects
Loan Agreement
Debt Sizing
Debt Sizing Example
Control Accounts & Cash Flow Waterfall
Covenants in Project Finance

Part 2 - Excel Refresher

Boosting Productivity in Modeling
Understanding Anchoring
Understanding Dates
Understanding IF Statements
Understanding SUMIF function
Understanding LOOKUP function
Understanding MIN MAX functions

Part 3 - Financial Modeling For Wind and Solar Projects (SPV pays taxes)

Introduction to the Financial Model and Case Study
Timing and Flags
Modeling Dates
Modeling Flags 1
Modeling Flags 2
Modeling Flags 3

Modeling Energy Generation

Energy Generation Recap
Modeling Energy Generation
Modeling Energy Generation with Seasonality Factor

Selling Energy

Selling Energy Recap
Modelling Revenue

Operating Costs

Operating Costs Recap
Modeling Operating Costs

Working Capital

Understanding Working Capital
Modeling Working Capital

PP&E and Depreciation

Understanding PP&E and Depreciation
Modeling PP& and Depreciation

Tax Expense and Tax Paid

Understanding Taxes
Net Operating Losses
Modeling Taxes 1
Modeling Taxes 2

Equity, Dividends and Cash

Understanding Equity
Modeling Equity, Dividends and Cash - 1
Modeling Equity, Dividends and Cash - 2

Sizing the Debt for Wind and Solar Projects

Debt Sizing for Renewable Projects
Sizing the Debt -1
Sizing the Debt - 2

Modeling Construction Phase

Construction Timing
Modeling Construction Costs
Understanding Construction Funding
Construction Funding Overview
Modeling Construction Funding 1
Modeling Construction Funding 2
Financing costs 1
Financing costs 2
Linking Funding Sheet to Operations 1
Linking Funding Sheet to Operations 2

Term Loan

Modeling Term Loan

Project Finance Debt Ratios

Understanding DSCR
Modeling DSCR
Understanding LLCR & PLCR
Modeling LLCR
Modeling LLCR based on effective interest rate

Debt Service Reserve Account ("DSRA")

Understanding DRSA - 1
Understanding DSRA - 2
Modeling DSRA 1
Modeling DSRA 2
Modeling DSRA 3
Modeling DSRA 4

Shareholder Loan

Understanding Shareholder Loan - 1
Understanding Shareholder Loan - 2
Modeling Shareholder Loan - 1
Modeling Shareholder Loan - 2
Modeling Shareholder Loan - 3

Project Returns

Project Returns Overview
Modeling Project Returns - 1
Modeling Project Returns - 2
Project Optimization

Model Checks and Scenario Manager

Modeling Checks
Modeling Scenario Manager
Construction Funding Macro

Summary Sheet

Summary

Part - 4 Financial Modeling For Wind and Solar in US

Investment Structuring
Tax Efficiency
Production Tax Credits
Investment Tax Credit
Modeling PTC
Modeling ITC
Modeling Tax Benefits for Efficient Taxpayer
Modeling Tax Benefits for Inefficient Taxpayer
NPV of Tax Benefits
Modeling Returns of the Efficient and Inefficient Taxpayer
Understanding Tax Equity - 1
Understanding Tax Equity - 2
Intro into Tax Equity Modeling
Tax Equity Modeling 1 - Sizing Tax Equity
Tax Equity Modeling 2 - Sizing Back Leverage Debt
Tax Equity Modeling 3 - Construction Funding
Tax Equity Modeling 4 - Sponsor's Tax Credits and EBT
Tax Equity Modeling 5 - Sponsor's Tax Liability
Tax Equity Modeling 6 - Sponsor IRR

Screenshots

Project Finance Modeling for Renewable Energy - Screenshot_01Project Finance Modeling for Renewable Energy - Screenshot_02Project Finance Modeling for Renewable Energy - Screenshot_03Project Finance Modeling for Renewable Energy - Screenshot_04

Reviews

Esther
July 23, 2023
I found this very useful, easy to follow, clear and thorough. I truly appreciated the renewable energy theory running in parallel with the model building and the explanations behind the formulas as they were being introduced. Very happy I purchased this. Only two disappointments were: 1. Too many tabs that could have been reduced with collapsing cells. 2. I was very surprised the model did not incorporate formulas for Major Maintenance Reserve Accounts especially as there was a verbal mention of MMRA in one of the sessions. As the solar inverters and batteries tend to last for 10years. The model should have built in equipment overhaul every 10 years, so 2 in a 25 year tenor. This would effect the IRR and would also mean there would be available cash swept into the MMRA after satisfying (CFADS and DSRA) for equipment overhaul every 10 years rather than a one off cash outflow every 10 years. The model seems to assume the offtaker will pay for this.
Graham
May 23, 2023
Very useful, yes. Nice mix of Renewable Energy theory, modelling techniques and financial considerations.
George
May 16, 2023
The course is comprehensive and informative. The presenter however has an annoying tendency of repeating the filler word "SO" too much. It can drive one crazy. Additionally, the Excel formatting and design portion is subpar - barely acceptable. It is a nightmare! There are just too many lines without any calculation that are aimlessly and repeatedly referring to other lines (over and over again). There are too many tabs, and lines linking back and forth to other tabs. It's an auditing nightmare! Also, as a result, we are forced to waste countless minutes (maybe hours), watching the presenter repeatedly linking the same lines and formatting them.
Luka
May 3, 2023
I feel like it's the robot talking to me, I would much rather prefer an actual person giving this lecture, not automated script reading software delivering the audio.
David
March 16, 2023
It has been interesting. At times too fast and a bit difficult to follow. But results are there so it does work
Heather
February 2, 2023
a great review and I feel confident knowing I can have these notes now for my new job, that said many online learning courses show the calculations of each answer choice in a quiz to explain in narrative why one answer choice is correct and the rest are incorrect. There should not be any reason why that would could not be made available to paying students in a drop down or at the end of the quiz for review and learning purposes. This is a design flaw of the udemy set up and not necessarily of the instructor perhaps.
Gabriel
December 7, 2022
I was enticed by the learning outcomes but after I enrolled, was greeted by dearth of disappointments. I couldn't even follow what the instructor is saying or doing. Your models do not look clean at all. I do not recommend this course to anyone desiring to break into renewable energy financial modelling
Michael
November 13, 2022
Now well versed in project finance modeling for wind projects. this course is very comprehensive and useful in my current role as Sr Mgr in Project Structuring and Finance for Solar Projects
Damien
July 6, 2022
I'm still midway through this Project Finance course for Renewable Energy but it's been phenomenally useful! The lecture materials are very well-structured and the training financial model simplifies things while still being very realistic. I'm able to apply the stuff I've learned to my job. Hosting on Udemy also means we can replay videos of sections that are more difficult, and own the pace of our learning. This is a better learning experience than in-person courses which squeeze all materials within 2-3 days while not being able to relook materials if we need to.
Deepu
May 31, 2022
A bit more theory could have been added towards the construction and financing part. Especially what is the exact difference between upfront fees and agent bank fees. who are we paying this upfront fee? if it is to the bank, then how is it different from agent bank fees? Also, before getting down to calculations, one simple model could be explained without referencing from the excel sheet. for examples, to find sources - calculate a, b,c and add.
Ankur
May 7, 2022
The concepts discussed and modelled are exactly the same which I see in my daily office work. Thanks Greg.
Peiwen
September 5, 2021
It explains everything from how energy generator works to how things are contracted and basically how all the numbers you would used comes from. As a finance student has no engineering background, many information is great to know and understand! 2000% recommand!
Sabdar
August 13, 2021
This course is very detailed and the instructor teach the every step of Finance Modeling for Renewable Energy.
Ritvik
March 14, 2021
I was looking for a course on Solar Financial Modelling and fell on this. So far its been optimal in level of detail, and the presentations are well made.
Ryan
February 17, 2021
Interesting course, but every reference to a person in the course is a "he." How about some "she" or just go with "they?" 2021 y'all.

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3290856
udemy ID
7/2/2020
course created date
7/23/2020
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