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Financial Modelling for Power Generation Projects - Training course

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Financial-Modelling-for-Power-Generation-Projects-course

Financial Modelling for Power Generation Projects will give you the skills to efficiently develop, modify and analyse financial models for projects in the power generation sector. The course covers essential topics including funding mechanics, operational analysis and investment metrics. It gives you a robust platform for analysis in a sophisticated environment.

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.


Project finance modelling for power 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.


Financial Modelling for Power Generation Projects will enable you to

  • Master best practice techniques for financial modelling of power generation projects to achieve flexibility and robustness
  • 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
  • Understand a flexible framework for tax modelling, adaptable to regional jurisdictions
  • Develop flexible funding structures for analysis of project finance debt and other funding sources    


Do you work with project finance modelling in the power generation sector?

If you need to build, review or analyse financial models for project analysis or project financing in the power generation sector, this course is for you. Typical attendees include analysts, financial managers from project companies, advisors and financiers, in particular project finance modelling analysts.


Required knowledge: Excel and mining industry awareness

It is expected that you will have previous exposure to Excel in a financial modelling context. A foundational knowledge of investment concepts such as internal rate of return (IRR) and cash flows is also required.


Interested in project finance theory?

Corality’s Project Finance Academy includes the course ‘Project Finance: Concepts and Applications’ which covers essential foundation knowledge for professionals starting out in a project finance career.


Best practice courses in financial modelling

For a complete list of Corality’s courses and workshops in financial modelling, project finance modelling and valuations analysis and modelling, go to the training porfolio.

The training schedule shows you a list of all the upcoming courses in your region, including our popular locations financial modelling in London, project finance modelling courses in New York, and training courses in Toronto.


Learn more from our free financial modelling examples

If you want to learn more about financial modelling and project finance analysis in your own time, then we recommend visiting the SMART Campus, our hub for free financial modelling examples and tutorials. Some of the highlights include debt service reserve account (DSRA) modelling, loan life coverage ratio (LLCR) analysis, and Excel keyboard shortcuts.

Course outline

Financial modelling of traditional thermal power projects requires a robust and flexible approach to developing analytical functionality that addresses the needs of sponsors, investors, operators and project finance banks.

This practical training course in financial modelling includes a number of workshop modules aimed at equipping participants with stronger skills for sophisticated analysis of traditional thermal power projects.


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

  • Understand how to envision a financial modelling process from beginning to end
  • Gain insights into a typical financial model development process - step-by-step - for a traditional thermal power 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
  • Master the art of consistency amongst your team in calculation techniques and presentation of outputs to drive trust and reliability in analysis and comparable analysis

Representing the construction phase of a power plant in the Excel model:

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

Modelling of pricing and purchase agreements in power generation:

  • Model typical off-take agreements and power purchase agreements ("PPA's")
  • Model both capacity based and energy based PPA agreements
  • Integrate both PPA and spot pricing into the operational calculations
  • Develop feedstock cost modelling including feedstock stockpiling / storage

Forecasting and modelling of production metrics:

  • Understand application of different forecasting methods and appropriate application of each
  • Conversions of gross to net production
  • Model conversion of energy from fuel source (calorific content), to energy produced (heat rate and efficiency)
  • Plant availabilities including outages (forced, unforced)
  • Considerations of plant degradation, output levels improvements due to major maintenance programs

Financial modelling techniques for operational costs and project maintenance:

  • Integrate fixed and variable costs typical of power generation projects
  • Learn how to model flexible volume drive controls for variable costs
  • Understand the important role of real vs. nominal costs (escalation) and how to integrate powerful indices 
  • Learn how to model major maintenance reserving 

Integrate project finance debt and importance of 'seniority' of payments

  • Develop comprehensive debt modelling mechanics, with a  specific application of DSCR sculpted repayment using first principle calculation for full transparency
  • Incorporate the functionality of target Debt Service Coverage Ratio repayments
  • Review other repayment options including bullets and linear commonly used in project finance
  • Discuss debt sizing methodologies
  • Discuss tariff optimisation and learn how to incorporate into the model
  • Cash Flow Available for Debt Service (“CFADS”) – expand the financial model to incorporate this fundamental line item for project finance analysis.
  • Build transparent calculation steps to showcase the Cashflow Waterfall principles and cashflow available at every significant step
  • Understand the risk of Circular References in Excel and how these can best be avoided using clear logic and some simple rules

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
  • Tax creditor accounts for correct assignation of tax payable and paid
  • Understand the working of tax loss accounts

Financial return and Project return analysis:

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

Master Scenario Management with an efficient financial model structure:

  • Work faster, better and with more insights using Corality'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
  • Review how the scenario manager can be used in contract negotiations

schedule

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