Financial Model for Renewable Energy Projects

Introduction:

The financial model offers a straightforward approach to assess the returns of renewable energy projects. It includes cash flow analysis calculations and a user-friendly dashboard to present the results. With this model, you can determine the project's internal rate of return (IRR) and net present value (NPV), Levelized Cost of Electricity (LCoE) at both the project level (without debt) and for equity investors (with debt) and Levelized Power Purchase Agreement (LPPA). You will see find several graphs to interpreter and see the cash flows through the project's lifetime.

This financial model is specifically designed for individuals who want a straightforward and user-friendly approach to analyze renewable energy projects. It eliminates the need for in-depth financial analysis knowledge and saves you from spending hours deciphering complex background calculations. This is the simplest model available, encompassing all the essential tools and results found in comprehensive financial models.

Main Features:

• Simple to use
• Fast to run
• No Macros or circularities to deal with
• Only 15 inputs
• Cover page and Documentation section explaining how to use the model and how the calculations are performed.
• Dashboard with charts and report

Financial Model Structure:

The model is divided into the following sheets:

• Cover: presents the description of who to operate the model, the style used in the model and a descriptions of all inputs the user should set to run the financial model.
• Results: a dashboard with the main inputs and all of the outputs, including 8 graphs presenting the cash flows and returns of the project.
• Inputs.: all the inputs the user needs to provide to run the model. This is the only sheet in the model that the user needs to provide information. All the other sheets are calculated and it is only used for the user to review and check results.
• Cash Flow: This is where the financial model calculations are performed.
• C&W (Checks & Warnings): Sheet that performs models sanity check.
• Documentation: this section provides information to the user about some of the assumptions used in the formulas and calculations and explanations on the main model's items.

Cash Flow Structure:

The Cash Flow is divided into 2 main sections:

1. Main Calculations
2. Supporting Calculations

Main Calculations:

The main calculations section contains:

• Production / electricity generation
• Investment (CAPEX + Funding)
• Operating Activities (OPEX)
• Cash Flow Available to Debt Service (CFADS)
• Cash Flow Available to Equity
• Equity Return
• Project Return

Supporting Calculations:

The supporting calculation section contains:

• Tax Calculations (geared and ungeared)
• Depreciation schedule and calculation
• Debt
• LCOE and LPPA calculations

Other Screen Shots:

Cover Page:

Cover sheet - screenshot 1

Cover sheet - screenshot 2

Results:

Results sheet screenshot 1

Results sheet screenshot 1

Inputs:

Cash Flow:

Cash flow screenshot 1

Cash flow screenshot 2

Cash flow screenshot 3

C&W:

Documentation: