Energy Recovery Facility (ERF) – Dynamic 10 Year Financial Model

Description
Energy recovery is an important source of renewable, sustainable energy and a vital link in the waste management chain.
An Energy Recovery Facility (ERF) produces energy in the form of electricity, heat or both through the combustion of residual waste. Residual waste (or black bag waste) is the non-recyclable waste that’s left after recycling. The facility treats non-recyclable waste as a resource instead of sending it to rot in landfill.
Energy Recovery Facilities are vital in supporting world's ambition to reduce waste in an efficient and effective manner, helping to reduce the impact of waste on climate change.


This Financial model presents a business scenario of a company owning and/or leasing Energy Recover Facilities and ERF Plants for the production of energy in the form of electricity using non-recyclable waste.
Suitable for either a startup or an operating Company, the model provides a dynamic 10-Year Financial Plan which includes calculations of Leased Facilities (Existing and New) and Leases Payment Schedule, Development Schedule and Costs of New ERF Plants, Scenarios for Waste generated, Revenue & Direct Costs, Capital Expenditures, Debt Schedules, Tax Incentives, Financing through Debt & Equity and Valuation & Exit Multiples in case of a potential sale of the business.


Outputs of the template include forecasted Annual Financial Statements (3 Statement Model), Breakeven Analysis, various KPI and Financial Ratios, Performance Dashboard, Business Valuation, Sensitivity Analysis, Investor’s Returns Waterfall and a professional Executive Summary presenting company’s results.


The template structure follows Financial Modeling Best Practices principles and is fully customizable with a dynamic functionality allowing users to select the desired forecasted Years (1 to 10). Output Reports & Charts are updated based on the selected forecast period.


Detailed instructions on the use of the model are included in the Excel file.


Model Structure


Inputs & Model Calculations:
• General Business Info
• Facilities Leased Assumptions (Existing and new Facilities, Avg. Lease value, Lease Term, Maintenance Cost, etc.)
• ERF Plants Developed Assumptions (Existing and new Plants, Development Costs, Development Periods, Depreciation, etc.)
• Waste Generated, Sale Prices, Direct Costs Assumptions using Scenarios Analysis
• Capital Expenditures & Depreciation
• Annual Debt Schedules
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples (EV/Revenue and EV/EBITDA)


Outputs:
• Dynamic 10-Year Forecast (3-Statement Model)
• Breakeven Analysis
• Summary of various KPIs and Financial Ratios (Operating Metrics, Profit Margins, ROE, ROA, etc.)
• Dynamic Performance Dashboard
• Business Valuation (incl. Enterprise & Equity Value, DCF, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Exit Year Executive Summary (can be used for investment decisions)


Help & Support
Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
Whether you have no experience or are well-versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you experience any difficulty while using this template and cannot find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and explain your specific needs briefly.