Renewable Energy Project Finance Model
Originally published: 11/03/2021 08:52
Publication number: ELQ-65130-1
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Renewable Energy Project Finance Model

This is a financial model (project finance model) for wind and solar projects

Description
This financial model can be used to evaluate wind / solar investment opportunities. Its flexibility allows it to analyze investments of any size, and its functionality supports a variety of investment scenarios including different capital structures (pro-rata project finance debt, shareholder loan), flexible project timelines (project timeline is driven by the financial close date), and financial/operating models (includes both operations and financial calculations). Note that SPV pays taxes in this model.

The model features flexible timing where financial close drive the timeline, and includes all of the attributes of project finance model. It is split into construction period (modeled based on the monthly timeline) and operation period (based on the quarterly periodicity).

Project finance debt modeling is based on the present value of debt service (discount rate is lender’s interest rate). Debt service is based on the both P50 and P90 cases, but can be set to only P90 or P50 cases.

The model incorporates the breach of Debt Service Reserve Account, Debt Service Cover Ratio and Loan Life Cover Ratio into dividend payout.


This model is developed by FMO - one of the leading financial modeling training providers, with over 3000 students taught since January 2019.

Worksheets:

Summary
Inputs
Check Sheet
Legend


Construction Timing (monthly)
Construction Costs (monthly)
Construction Funding (monthly)

Timing (quarterly)
Revenue (quarterly)
Opex (quarterly)
Working Capital (quarterly)
PP&E (quarterly)
Equity (quarterly)
Tax (quarterly)
Debt (quarterly)
DSRA (quarterly)
Shareholder Loan (quarterly)
Returns (quarterly)
Financial Statements (quarterly)

This Best Practice includes
1 Excel file

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Further information

Assist with evaluation of investment opportunities in renewable energy (wind and solar)

Works best for wind and solar projects

May work for other renewables, some adjustments will be needed

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