Nordic Wind: Financial Modelling and Investment Analysis

The Corality Training Academy

The Corality Training Academy

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About the course

Nordic Wind projects require comprehensive and flexible financial modelling, and this course will give you the skills to efficiently develop, modify and analyse financial models in nordic wind, and also in solar and hydro. The course covers essential topics including regionally specific revenue sources, funding mechanics, operational analysis and investment metrics and gives you a robust platform for analysis in the most sophisticated environments.

You will learn the financial modelling techniques needed to build a best practice financial model suitable for debt structuring, investment analysis and operational scenario evaluation.

PERFORM PROJECT FINANCE BANKING ANALYSIS, INVESTMENT REVIEWS OR SPONSOR RESEARCH FOR NORDIC WIND PROJECTS

This hands-on course will clarify how project finance bankers, investors and external parties will analyse your project, and provide a deep understanding of the flexibility required in scenario analysis by a range of audiences.

THIS COURSE, FOCUSED ON FINANCIAL MODELLING NORDIC WIND PROJECT WILL ENABLE YOU TO

  • Master best practice techniques for financial modelling of renewable energy projects to achieve flexibility and robustness
  • Develop financial modelling modules for comprehensive analysis and structuring of revenue sources specific to the Nordic market
  • Build a flexible and powerful scenario manager to analyse your project’s sensitivity to key drivers
  • Prepare trusted analysis of commercial outputs tailored to investors and financiers, with a focus on valuation and risk
  • Develop flexible funding structures for analysis of project finance debt and other funding sources

DO YOU BUILD OR ANALYSE WIND PROJECTS IN THE NORDICS REGION?

If you need to build, review or analyse project finance models in the Nordic wind sector, or any other renewable project, then this course is for you. Typical attendees include analysts, financial managers from project companies, advisors and financiers.

Required knowledge: Excel, Finance and the Renewables sector

It is expected that you have some previous experience with financial models in Excel, and foundation knowledge of investment concepts such as NPV and cash flows analysis.

EXTEND YOUR UNDERSTANDING OF PROJECT FINANCE THEORY

To learn more about project finance theory, we recommend the ‘Project finance: Concepts & Applications’ course. This one-day project finance training course covers topics from ‘What is project finance’ to examples of typical transaction structures, risk mitigation approaches and market examples.

WHAT IS FINANCIAL MODELLING AND HOW CAN YOU LEARN MORE?

For a deeper understanding of Mazars approach to financial modelling and the Corality Financial Modelling methodology (our globally acclaimed financial modelling methodology), we recommend reviewing and downloading some of our financial modelling tutorials from the Online Resources section of the website. Many of the free examples are inspired by content from our training courses in financial modelling and project finance, and from valuation modelling and theory.

Course Outline

LEARN THE SKILLS REQUIRED TO DEVELOP A COMPREHENSIVE FINANCIAL MODEL FOR A NORDIC WIND PROJECT

Nordic Wind projects often require significant financial analysis, and this hands-on financial modelling training course give you the skills and confidence required to develop a comprehensive financial model for planning, investments and financing analysis.

Develop a strong understanding of financial model architecture and process in the renewable energy sector, to ensure the big picture is always in mind:

  • Understand how to envision a financial modelling process from beginning to end
  • Recognise the process similarities in modelling for other sectors – solar or hydro – and learn which modules can be standardised across energy sources
  • Gain insights into a typical financial model development process – step-by-step – for a renewable energy model
  • Benefit from a flexible timing framework to underpin the model architecture – an essential feature for projects where the dates / timing may change over time (which includes 99% of all projects)
  • Capture the financial implications of delays (construction / operations) in the project time table with a structured financial modelling approach

DEVELOP POWERFUL FINANCIAL MODELLING FEATURES FOR NORDIC WIND PRICING AND PURCHASE AGREEMENTS

Having powerful and transparent analysis of revenue components is a critical component of a Nordic Wind project.

Modelling of pricing and purchase agreements in renewable energy:

Learn about off-take, prepaid and power purchase agreements (PPA) Integrate both PPA and spot pricing into the operational calculations Expand PPA analysis by having variable pricing structures, milestones, and penalties This section will develop modelling requirements required for commercial analysis and stress-testing of

  • Elcerts
  • Power Purchase Agreements (PPA)
  • Merchant Power
  • GoO revenues

REPRESENTING THE CONSTRUCTION PHASE OF A RENEWABLE ENERGY PROJECT Representing the construction phase of a renewable energy project in the Excel model:

  • Discuss funding alternatives for renewable energy projects (bank debt, capital markets, government supported structures, export agencies) and how this impacts the financial modelling process
  • Incorporate flexible functionality for construction delays and/or cost over-runs
  • Integrate typical renewable energy construction contracts and contingencies

FORECASTING AND MODELLING OF PRODUCTION METRICS

  • Understand application of different forecasting methods, the appropriate allocation of each
  • Learn to integrate multiple probability exceedance profiles concurrently (e.g., P50, P90)
  • Convert gross production to net production by accounting for: Operational ramp up schedules, impact of production unit (e.g. turbines) availability and efficiency, and gains and losses of production such as seasonality of renewable energy.

FINANCIAL MODELLING TECHNIQUES FOR OPERATIONAL COSTS AND PROJECT MAINTENANCE

  • Integrate fixed and variable costs typical of renewable energy projects
  • Learn how to model flexible volume driver controls for variable costs
  • Understand the important role of real vs. nominal costs (escalation) and how to integrate powerful indices
  • Discuss different reserve account structures (i.e. maintenance)

PROJECT FINANCE MODELLING: INTEGRATE PROJECT FINANCE DEBT

  • Incorporate the functionality of target Debt Service Coverage Ratio repayments
  • Discuss other repayment options including bullets and linear commonly used in project finance
  • Incorporate various debt sizing methodologies.

REVIEW DEPRECIATION AND TAX CALCULATIONS

  • Flexible depreciation calculations for an efficient financial model structure
  • Understand how to develop flexible input structures for analysis of multiple depreciation methods
  • Correct taxable income for tax calculations
  • Tax creditor accounts for correct assignation of tax payable and paid
  • Understand the working of tax loss accounts

FINANCIAL RETURN ANALYSIS: PROJECT RETURN – ESSENTIAL FINANCIAL MODEL OUTPUT

  • Inclusion of best practice net present value (NPV) and internal rate of return (IRR) calculations for the renewable energy project
  • Discussion about key differences between XNPV vs. NPV functions
  • Limitations and dangers in the application of the IRR function

LEVELISED COST OF ELECTRICITY

  • Learn the pros and cons of the LCOE metric
  • Develop the calculation

MASTER SCENARIO MANAGEMENT WITH AN EFFICIENT FINANCIAL MODEL STRUCTURE

  • Work faster, better and with more insights using Corality Academy’s scenario management solutions
  • Use commercial scenario analysis to assess the working of the financial model, and to sense check your logic and calculations
  • Build confidence in your analysis through pre-programmed combinations of model inputs

Nordic Wind: Financial Modelling and Investment Analysis at The Corality Training Academy

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Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

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