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).
      • Optimal economic lifetime (average cost & marginal cost).
      • 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 trainers having expertise and experience in financial & economic modelling of renewable energy projects.

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