Wind Farm Startup Model - Renewable Energy
Originally published: 29/03/2024 09:05
Last version published: 18/06/2024 13:37
Publication number: ELQ-49319-2
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Wind Farm Startup Model - Renewable Energy

Model out the costs and revenues of up to 5 wind turbine deployments. Includes DCF Analysis and 3 statement model.

I have recently started building models in the renewable energy industry and so far my main findings have been larger initial capex cost requirements and low operating costs. Potential returns will vary from scenario-to-scenario depnding on scale, pricing, and other factors. This financial model makes it easy to plan out up to 10 years of operations and the potential terminal value of a wind turbine farm.

Template Features:
  • Recent Update: Adjusted loan so the user can choose to accrue or not accrue interest during the i/o period.
  • Model up to 5 deployment tranches.
  • Define turbine count / cost, construction costs, land / lease, construction period, debt financing, and more.
  • For financing, up to 5 loans with options for interest only periods during construction and then a REFI.
  • Plenty of slots for variable costs that can be based on MW/h transmission, cost per turbine per month, and other direct monthly costs per month.
  • Corporate overhead input schedule available.
  • Timing assumptions are based on month # entries as far as start month / termination month and individual expense start months.
  • Integrated financial statements.
  • DCF Analysis, IRR, option for joint venture, equity multiple, total ROI.

Revenue Assumptions

To define how much the wind farm can earn over time, I built two possible revenue streams that can be configured per deployment tranche. PPA and wholesaling. PPA means power purchase agreement where the wind farm agrees to provide a certain level of energy in exchange for regular monthly payments that stay the same throughout the year and have escalations. Wholesaling is selling the actual energy produced on the open market. This second stream is much more complex to model, and you will have inputs for seasonality / capacity factor per month, energy pricing and expected change over time, production hours, and estimated production degradation. I've also included hard coded inputs for up to 3 other income streams (renewable energy credits (RECs), Government Subsidies, and Ancillary Services. On those, simply enter the expected monthly income amount.

This template is also included in two bundles:

This Best Practice includes
1 Excel model and 1 Tutorial Video

Acquire business license for $60.00

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Further information

Run various scenarios to understand the feasibility of starting up a wind farm project.

Any size farm.

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