Economic & Financial Modelling of Renewable Energy Projects
MPER-EN-P
Who should attend?
This course provides a better understanding of the use of decision-making tools in the field of renewable energy projects and incorporate risk analysis in the economic & financial evaluation.
Public :
Economists, engineers and financial analysts concerned with decisions affecting medium and long-term cash flows, such as investment, disinvestment, acquisitions, who need to improve their understanding of the theory and practice of investment analysis in the renewable energy sector.
Level :Skilled
Prerequisite :
Basic knowledge of Microsoft Excel.
Course Content
ECONOMIC CRITERIA FOR DECISION MAKING
-
Duration : 1.5 Days
Cost of capital and discount rate, value creation.
Economic criteria for project evaluation: net present value (NPV), internal rate of return (IRR), payback period, etc.
Methodology for assessing the global profitability of capital invested.
Impact of taxation and inflation on economic indicators.
Choosing an investment program with a limited budget, scarcity cost of capital.
Case studies: solar photovoltaic & wind power plant projects
ECONOMIC COST ANALYSIS
-
Duration : 0.5 Day
Accounting cost vs. economic cost. Total discounted cost, annual economic cost.
Unit economic cost analysis vs. Levelized cost of electricity (LCOE).
Cases studies: LCOE of power plants, definition of an optimal economic lifetime.
IMPACT OF FINANCING ON PROJECT ECONOMICS
-
Duration : 0.5 Day
Financing of renewable energy projects (ring-fencing and SPV concept).
Project finance valuation for renewable energy projects.
Different financing plans and debt repayment.
Return on equity (IRR and NPV of equity) and financial leverage.
Determination of the optimal electricity tariff leading to project economics balance.
Case studies: Solar photovoltaic and wind farm projects with specific financing.
RISK ANALYSIS OF RENEWABLE ENERGY PROJECTS
-
Duration : 0.5 Day
Overview of resource assessment in renewable projects (wind & solar).
Probabilistic distribution approach (statistical & seasonal analysis of production, P99, P90 & P50 statics).
Risk matrix, risk classification and strategies for risk mitigation.
Risk evaluation using break-even price and sensitivity analysis.
Risk analysis using spider and tornado diagram.
CASE STUDIES
Solar photovoltaic project.
Wind power plant project.
Equipment optimal economic lifetime.
Power plant project.
Learning Objectives
Attendees will be able to implement the following skills:
To carry out investment profitability studies in renewable energy projects including all aspects of fiscal incentives, inflation, and financing up to the Levelized Cost Of Electricity (LCOE) evaluation,
To analyze the deterministic economic results and carry out sensitivity analysis,
To incorporate the risk and uncertainties in the economic evaluation of renewable projects.
Ways & Means
Case studies simulated on computers.
Learning assessment
Participants will be evaluated during the training through quizzes and case studies.
More
Coordinator :IFP Training instructors, with expertise in the field and trained in modern teaching methods adapted to the specific needs of learners from the professional world.
To French entities : IFP Training is referenced to DataDock ; you may contact your OPCO about potential funding.
Please contact our disabled persons referent to check the accessibility of this training program : referent.handicap@ifptraining.com
IFPT Account
