Renewable Energy Financial Model
Originally published: 18/03/2025 16:00
Publication number: ELQ-87246-1
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Renewable Energy Financial Model

Comprehensive financial model designed for analyzing renewable energy projects, such as solar or wind farms.

Description
Inputs:
  • Ability to build and compare up to 10 different scenarios.
  • Two input tabs: one for non-time-dependent inputs and another for time-dependent inputs.
Calculations:
  • Operations:
    • Revenue: Analysis of revenue streams from contracted and uncontracted Power Purchase Agreements (PPAs), as well as merchant sales.
    • Opex: Analysis of fixed costs (e.g., grid fees, operations and maintenance expenses, insurance) as well as variable costs (e.g., grid charges).
  • Debt:
    • Calculation of interest payments and debt repayments.
  • Equity:
    • Analysis of dividends and returns.
  • Tax & Depreciation (T&D):
    • Computation of taxes payable, deferred taxes, and treatment of tax losses.
Output:
  • Financial Statements: Profit and Loss (P&L), Balance Sheet, and Cash Flow statements
  • Sensitivities: Visualization of variations against the base case concerning Revenue, Opex, EBITDA, Debt Service, and Dividends.
  • Graphs: Revenue and Opex breakdown, Capex profile, and Funding mix analysis
Model Features:
  • Monthly construction phase followed by quarterly operational periods.
Purpose of the Model:
  • Facilitating financial analysis and decision-making for renewable energy projects by providing insights into their financial viability and associated risks across both construction and operation phases.

This Best Practice includes
1 Excel File

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