Financial Modelling for Renewables
Financial modelling applied to renewable energy projects
Working in the renewable energy sector, you are looking to design and build best practice models. You will learn how to build a financial model ready to support the pre-financial close negotiation process. Based on an offshore wind case study, you will be able to undertake:
- Basic generation and revenue calculations;
- Construction phase modelling (including identifying and resolving unavoidable circularities);
Model optimisation (including P90 vs P50 scenarios)
Book Your Course
| Date | Format | Location | Duration | Instructor | Price | |
|---|---|---|---|---|---|---|
| 3, 4 & 5 Nov | Live Online | Europe / Gulf timezone | 12 hours | Andrew Berkley | £1,595.00 | |
| 19 & 20 Nov | Classroom-based | London | 2 Days | Andrew Berkley | £1,900.00 | |
| 4 & 5 March | Classroom-based | London | 2 Days | Andrew Berkley | £1,900.00 | |
| As requested | In house | As requested | As requested | Any | Variable | Enquire |
Our Clients
Course Content
What will I learn?
We will build together, step-by-step, the calculations required to build a fully dynamic pre-financial close renewable energy model ready for testing and to support negotiations. We will also cover fixing repayment profiles to prepare the model for post-financial close sensitivity analysis and P90 / P50 scenarios.
Working with a case study based on an offshore wind farm and a template start model, your detailed modelling will cover all the challenges associated with renewable energy modelling. Model optimisation lies at the heart of the course, being the process of:
- Identifying a lowest-price-wins unit tariff for a Power Purchase Agreement; while
- Meeting the covenants (and other constraints) specified by the senior lenders (under the P90 scenario); and
- Achieving a required equity rate of return (under the P50 scenario).
Following one of our live courses, you will receive full and ongoing access to the video-based version of our Project Finance Modelling course, online support from our team of modelling experts and the opportunity to submit additional case studies for review and feedback.
Is this course right for me?
Financial Modelling for Renewables is designed for professionals in the renewables sector who need to build, modify or run renewable energy financial models with non-recourse financing structures.
This is a fast-track financial modelling course with core best practice techniques applied to more complex challenges. Some experience the renewable energy models would be an advantage, as would knowledge of basic accounting treatments (and how they might be modelled). This course is particularly valuable for those that may have attempted to build renewable energy models previously based on self-taught approaches.
Pre-Course Topics
Generation
- Seasonality
- Degradation
Revenue
- Contracted and uncontracted
Course Topics
Model design
- Sheet structure
- Model logic flow
- Calculation blocks and links
Drawdown phase
- Construction period expenditure
- Sources and uses of funds
- Drawdown of senior debt and equity
Senior debt interest and fees during construction
- Arrangement fee, commitment fee and interest
- Applying day conventions to interest
- Understanding model periods and debt balances
Drawdown phase circularity
- Concept of drawdown phase circularity
- Creating the circularity and solving manually
- Creating a macro to solve the circularity
The Transition sheet
- Moving from drawdown phase to repayment phase
Repayment phase: senior debt
- Simple principal payment & interest
- Debt Service Cover Ratio (DSCR)
- Sculpted debt repayments to achieve a target DSCR
Repayment phase: equity
- Dividends
- Shareholder returns
Financial statements
- Integration of the financial statements
- Using double entry to balance the balance sheet
Model optimisation
- Assessing optimisation using a Track sheet
- Optimisation for gearing / leverage
- Optimisation for DSCR
- Impact of changes to tenor
Refining the funding solution
- Assessing the impact of adding a shareholder loan
“What if?” analysis
- Running and rationalising sensitivities
Post-Course Topics
Loan Life Cover Ratio (“LLCR”)
- Calculating an NPV using a variable discount rate
Debt Service Reserve Account (“DSRA”)
- Pre-funding the DSRA
- Solving the DSRA circularity
Fixing the repayment profile
- Running post-close sensitivities
- P50 / P90 model optimisation
Meet Our Instructors
John Dimberline
John has 18+ years of experience and has led advisory teams on many complex projects supporting both public sector procurers, private sector bidders and corporates. Formerly head of financial modelling at Grant Thornton, John leads the senior management team at F1F9.
John Dimberline
Managing Director UK
John has 18+ years of experience and has led advisory teams on a large number of complex projects supporting both public sector procurers, private sector bidders and corporates.
Andrew Berkley
With a background in business education and financial advisory work, Andrew leads training delivery at F1F9. Andrew has delivered financial modelling courses to numerous institutions including European Bank of Reconstruction and Development, Deloitte, KPMG, Grant Thornton and Siemens.
Andrew Berkley
Director UK
With a background in business education and financial advisory work, Andrew leads training delivery at F1F9. He has been with F1F9 since 2013. Andrew has delivered financial modelling courses to numerous institutions including European Bank of Reconstruction and Development, Deloitte, KPMG, Grant Thornton and Siemens. He is an experienced model builder and reviewer with sector experience in telecommunications and transport. He has also worked with smaller businesses in preparing financial forecasts for early stage equity funding proposals. He is also a Chartered Accountant.
Omar Shaker
Omar is a highly experienced financial modeller having spent the last 15+ years building FAST compliant models in the project finance advisory (debt and equity) space. He has worked on some of the largest transactions globally with an aggregate value of more than USD 20bn. He is fluent in Arabic both written and spoken.
Omar Shaker
Director Dubai
Omar is a highly experienced financial modeller having spent the last 15+ years building FAST compliant models in the project finance advisory (debt and equity) space. He has worked on some of the largest transactions globally with aggregate value in excess of USD 20bn. He is fluent in Arabic both written and spoken.
Morten Siersted
Morten founded F1F9 in 1999. He has played a key role in developing the FAST Standard, including setting up the FAST Standard Organisation in 2011.
Morten Siersted
Director & Founder Europe
Morten founded F1F9 in 1999. He has played a key role in developing the FAST Standard, including setting up the FAST Standard Organisation in 2011.
Client Reviews
S. C. Invest NL
I liked the format and the fact that you are building up the model. i think the course was most helpful when you needed to think for yourself and build a part – perhaps more time spent doing this would have been good.
S. V.EBRD
Thanks a lot for the course, it was very useful and well structured. The instructor explained it awesome!
Jord W.
Excellent training! well thought program, really guiding you through the process of setting a financial model! I can really recommend it to everybody who is interested in following a financial modelling course.
Maryam Ahmed Network Rail
Great course- has given me a solid foundation to understand and build basic models within my role. Pacing is good and found the tutor’s instructions to be very straighforward to follow. Highly informative and will definitely consider coming back for the next level once I have put some of the skills learnt on this course into practice. Thank you
Charles Serinet SUEZ
Very useful to understand the impact of changes in revenue, gearing, DSCR on CFADS, Average DSCR, Div and Equity IRR. Very interesting as well to build step by step the balance sheet, P&L and CF to understand the connections between each statements. The track and resources tabs are really useful too.
Michael Leonhart KPN
The structure of the course was good and gave a good insight in how to build the consistent model. Sometimes, it was more about doing rather than really understanding why, so maybe a little more time spend on that topic would be nice. In general I learned a lot about the various shortcuts an modelling in general.
Mthandeni Vilakazi, AIIM
Specifically found the shortcuts and best-practice principles on model construction particularly helpful in improving productivity and efficiency. I also appreciated the use of a tracking sheet, as well as the time taken to explore alternative functions and approaches to understand their limitations.
Agie Turowska, Network Rail
The practical tools were great and will be very handy to pass on and help my colleagues too. The format was very good and easy to follow. I liked that we had two instructors helping when anyone got stuck while the rest were able to carry on.
Anonymous
Andrew was comprehensive, friendly and attentive. He managed the group very well, catered to all learning speeds, and ensured everyone’s questions were answered without disrupting the flow of the course.
Mthandeni Vilakazi, AIIM
The shortcuts and model construction best practices were particularly helpful in improving my productivity and efficiency. Andrew and Judith were phenomenal, the pace of teaching was excellent and very accommodating.
Get In Touch
Are you or your team looking to increase their financial modelling skills? Are you interested in team-based training focused on best practice and standardised approaches? Are you hoping to build up your own skills and expertise?
Our financial modelling instructors would be pleased to hear from you…