+2500

Students at FMO

July 2020

Course Launch

Over 14 Hours

Course Content



Where Our Students Work?






Course Objective

Project Finance Modeling for Renewable Energy course will give you the skills to develop and analyze financial models for wind and solar projects. The course covers essential topics including debt sizing and funding, wind and solar project operations, and investment returns, and will provide you with a robust financial modeling skillset for analysis of renewable projects in the most sophisticated environments.

In an online environment you will go from a blank Excel workbook to a financial model suitable for investment analysis, debt structuring and operational scenario evaluation. This course will provide step-by-step instructions on how to build financial model suitable for analyzing wind and solar projects.

By this end of this course, you will be able to build complex, real-life project finance models for wind and solar projects.

What This Course is About?

Project finance models for renewable energy are used to assess the risk-reward of lending to and investing in renewable projects (wind and solar). The project's debt capacity, investment returns and financial feasibility depend on expected future cash flows generated by the renewable energy project itself and a financial model is built to analyze this.

In the Project Finance Modeling for Renewable Energy course we will model complex wind and solar project finance transactions from scratch in excel.

You will learn about:

  • How to build a project finance model from scratch in excel for wind and solar projects;
  • Learn how renewable energy projects get developed and financed;
  • How to create best practice macro’s and Excel VBA codes to break circularities;
  • Learn how to size debt based on multiple covenants for wind and solar projects;
  • How to model Debt Service Reserve Account;
  • How to model unlevered project returns and blended equity returns;
  • Learn to integrate multiple probability exceedance generation profiles (P50, P99) into the financial model;
  • Learn basics of GP/LP flip structures and tax equity for project financing;
  • Gain insights into financial model development process, step-by-step – for a renewable energy model;
  • Optimize the model to achieve the requirements of lenders and investors.

This is the same comprehensive financial training used to prepare analysts and managers at top financial institutions and infrastructure funds.

How Does It Work?

The course length is over 14 hours.

First, we will review the basics of wind and solar projects development, so we understand all essential components of project finance transactions in the context of renewable energy.

Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in excel.

We will begin financial modeling in the third part, where we will build a financial model for wind and solar projects for the case when SPV pays taxes.

And, finally, In the fourth part, we will review the peculiarities of the US renewable projects and build a financial model that takes into account the tax credits available in the US, and introduce to the new source of financing called tax equity.

Is This Course For You?

Yes, if you need to build, review or analyse project finance models for wind and solar projects.

Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.

Course Prerequisites

You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV and cash flows.

Course Content

+Introduction to the Course
1 lecture03:01

In this video we will go over the course structure and describe what we will learn in each part of the course. The course is divided into five parts:

- in part 1, we will learn basic project finance theory, so we understand in and outs of project finance before we begin modeling;

- in part 2, we will introduce the toll road case study, review the modeling methods to increase your excel productivity and we will jump into excel to model the construction period in our project finance model;

- in part 3, we will model out financial statements which will include income statement, balance sheet and cash flow statement. 

-in part 4, we will introduce project finance items such as cover ratios, debt sculpting, debt service reserve account (DSRA), maintenance reserve account (MRA), revolver and shareholder loan. We will introduce to the problem of circularity in project finance models and we will learn how excel VBA can help us to resolve this circularity in excel. We will carry out valuation and model optimization in this part.

- in part 5, we will go over the advanced project finance modeling methods such as equity first financing, debt sizing macros, DSRA macros and scenario analysis automation.

It is highly recommended to watch this video so that you have the big picture of our journey ahead.

Preview03:01
+Part 1 - Project Finance Primer
11 lectures59:24

In this lesson we will be talking about what project finance is in the context of raising capital to fund construction of infrastructure projects. We will review distinctive features of the project finance and how project finance is different from the  corporate finance.

Preview05:38
Test Your Understanding of what is project finance? - Quiz
5 questions

In this lesson will explore the development of project financing method and review latest trend.

Project Finance in Numbers
02:29
Test Your Understanding of Project Finance In Numbers - Quiz
2 questions

In this lesson, we will review the important financial players, that participate in project finance transaction. These include investors, which are called project sponsors in project finance. Project sponsors, as we shall see, can further be divided into industrial investors, financial investors and sometimes government may also be an investor in the project.

Lender is another financial player which participate in project finance transaction. In fact, lender make project finance possible, because, typically, a majority of construction costs are financed with debt in project finance transaction.  We shall see that due to transaction size, lenders typically unite and form a syndicate to arrange a syndicated loan to the project.

Financial Players in Project Finance
05:58
Test Your Understanding of Financial Players in Project Finance - Quiz
5 questions

In this lesson we will explore the role of industrial players in project finance transaction. These are the companies which build the project, provide operations & maintenance service, supply raw materials and buy the product of the project company.

Industrial Players in Project Finance
03:04
Test Your Understanding of Industrial Players in Project Finance - Quiz
4 questions

In this lecture, we will talk about the role of the Government and public private partnerships (PPP) in project finance. We will look at the development of PPA for power industry in the US and its effect on the PPP development. We will then review a dominant PPP form - concession agreement and its main varieties.

Preview03:45
Test Your Understanding of Role of the Government in Project Finance
1 question

In this lesson, we will be looking at the risks in project finance transactions. As in any business venture, the project company in project finance faces 4 types of risks, these are project specific risks, macroeconomic risks, political risks and natural disaster risks. We will discuss these risks and see how they are allocated to the party which is best capable of managing those risks.

Risk Analysis in Project Finance
09:53
Test Your Understanding of Risk Analysis in Project Finance
5 questions

In this lesson, we will be looking at the capital and operating cash flows in project finance at different stages of project development. We will review the composition of project costs and project's Capex, different financing methods and forms, and important cash flows for lenders and equity investors.

Capital & Operating Cash Flows in Project Finance
04:02
Test Your Understanding of Capital & Operating Cash Flows in Project Finance
3 questions

In project finance, lenders usually impose strict restrictions on how the project company uses its cash. Cash movement in project company is controlled by means of control accounts and cash flow waterfall structure. In this lesson we will review these two important aspects of project finance transaction.

Control Accounts & Cash Flow Waterfall
05:32
Test Your Understanding of Control Accounts & Cash Flow Waterfall
5 questions

In this lesson we will talk about the covenants in project finance documentation. A covenant, also called an undertaking, is a promise by the borrower to the lender to do something or refrain from doing something in return for getting the loan.  Covenants appear in the loan agreement. The financial covenants are extremely important to understand for modelers, because they are part of project finance models.

Covenants in Project Finance
04:16
Test Your Understanding of Covenants in Project Finance
4 questions

In this lesson, we will review Quezon power plant case study which will show how proper risk allocation made it possible to finance construction of 800 million dollar power plant in the Philippines. 

Quezon Power Plant Project Case Study - Part 1
09:48
Test Your Understanding of Quezon Power Plant Project Case Study - Part 1
2 questions

In this lesson we will continue with Quezon Power Plant project. 

Quezon Power Plant Project Case Study - Part 2
04:59
Test Your Understanding of Quezon Power Plant Project Case Study - Part 2
1 question
+Introduction to Modeling
2 lectures16:41

In this lesson we will review the case study which will serve as a basis for our project finance model throughout the course.

Preview08:38

In this lesson, we will go over the modeling methods that we will be using in this course. These modeling methods are intended to make you and your model as productive as possible.

Preview08:03
+Timeline & Construction Period Modeling
5 lectures26:40

In this lesson, we will be talking about timeline development in project finance.

Understanding Timeline in Project Finance Models
02:02
Test Your Understanding of Timeline in Project Finance Models
3 questions

In this lesson we will model important dates in our project finance model.

Modeling Timing - 1
05:46

In this lesson we will start with modeling flags in our project finance model.

Modeling Timing - 2
06:30

In this lesson we will continue with modeling important flags in our project finance model.

Modeling Timing - 3
05:48
Modeling Timing - 4
06:34
+Modeling Escalation
2 lectures09:26

In this lesson, we will introduce you to the calculation of escalation factors based on the such price index as Consumer Price Index.

Understanding Escalation
02:43
Test Your Understanding of Escalation
2 questions

In this lesson we will incorporate escalation calculations in our project finance model.

Modeling Escalation
06:43
+Construction Costs
2 lectures08:55

In this lesson we will review construction costs in infrastructure projects.

Understanding Construction Costs
02:12
Test Your Understanding of Construction Costs
2 questions

In this lesson we will model construction costs.

Preview06:43
+Construction Funding
2 lectures08:44
Understanding Construction Funding
01:40
Test Your Understanding of Construction Funding
2 questions

In this lesson we will model construction funding in our project finance model.

Modeling Construction Funding
07:04
+Financing Costs
3 lectures16:35

In this lesson, we will learn about the financing costs that construction debt generates. These are arranging or upfront fee, commitment fee, agent bank fee and interest during construction.

Understanding Financing Costs
04:02
Test Your Understanding of Financing Costs
2 questions

In this lesson we will model construction debt drawdowns and equity investment on pro-rata basis, and after that, we will model upfront fee and commitment fee.

Modeling Financing Costs - 1
06:57

In this lesson, we will continue with financing costs modeling, and will focus on agent bank fee and interest during construction modeling. After that, we will complete the modeling of sources and uses of funds.

Modeling Financing Costs - 2
05:36
+Revenue
2 lectures08:27

In this lesson we will review the revenue that toll road project generates.

Understanding Revenue
01:43
Test Your Understanding of Revenue
1 question

In this lesson we will model toll road project revenue generated by light vehicles and trucks.

Modeling Revenue
06:44
+Operating Costs
2 lectures08:04

In this lesson we will learn about the fixed and variable maintenance costs and fixed management cost that the toll road project generates.

Understanding Operating Costs
01:46
Test Your Understanding of Operating Costs
1 question

In this lesson we will model the operating costs that the toll road project generates.

Modeling Operating Costs
06:18
+Non-Current Assets
3 lectures15:10

In this lesson we will learn about non-current assets and depreciation expense.

Understanding Non-Current Assets
01:44
Test Your Understanding of Non-Current Assets
2 questions

In this lesson, we will model non-current assets ("NCA"), NCA depreciation expense and maintenance capex.

Modeling Non-Current Assets - 1
05:53

In this lesson we will continue with NCA modeling. We will model maintenance capex depreciation expense  and we will link the NCA balance, maintenance capex and depreciation expense to financial statements.

Modeling Non-Current Assets - 2
07:33
+Working capital
2 lectures12:39
Understanding Working Capital
02:38
Test Your Understanding of Working Capital
4 questions

In this lesson we will model working capital in our project finance model.

Modeling Working Capital
10:01
+Term Loan
2 lectures09:58

In this lesson we will go over the construction debt refinancing and term loan.

Understanding Term Loan
01:39
Test Your Understanding of Term Loan
2 questions

In this lesson we will model term loan and interest expense.

Modeling Term Loan
08:19
+Tax
3 lectures15:33

In this lesson we will learn about tax expense, tax paid and deferred tax liabilities.

Understanding Taxes
02:25
Test Your Understanding of Taxes
2 questions

In this lesson we will model tax depreciation.

Modeling Taxes - 1
05:17
Modeling Taxes - 2
07:51
+Equity, Cash and Dividends
3 lectures15:00

In this lesson we will learn about what constitutes equity and how dividends are paid out.

Understanding Equity and Dividends
01:32
Test Your Understanding of Equity and Dividends
2 questions
Modeling Equity, Cash and Dividends - 1
05:46
Modeling Equity, Cash and Dividends - 2
07:42
+Debt Service Coverage Ratio ("DSCR")
3 lectures23:10
Understanding DSCR
06:24
Test Your Understanding of DSCR
3 questions

In this lesson we will model current DSCR and backward - looking DSCR.

Modeling DSCR - 1
08:41

In this lesson, we will model forward-looking DSCR, average DSCR and weighted average DSCR.

Modeling DSCR - 2
08:05
+Loan Life & Project Life Cover Ratios ("LLCR" & "PLCR")
3 lectures24:41
Understanding LLCR & PLCR
05:30
Test Your Understanding of Loan Life and Project Life Cover Ratios.
2 questions
Modeling LLCR
08:24
Modeling PLCR
10:47
+Debt Sculpting
2 lectures13:18

In this lesson, we will review the definition of debt sculpting and go over the debt sculpting calculations.

Understanding Debt Sculpting
04:46
Test Your Understanding of Debt Sculpting
2 questions

In this lesson, we will remodel the debt repayment based on the sculpted debt repayment profile.

Modeling Debt Sculpting
08:32
+Debt Service Reserve Account ("DSRA")
4 lectures26:25
Understanding DSRA - 1
02:24
Test Your Understanding of DSRA
2 questions
Understanding DSRA - 2
05:24
Modeling DSRA - 1
08:42
Modeling DSRA - 2
09:55
+Maintenance Reserve Account ("MRA")
4 lectures26:25
Understanding MRA - 1
02:25
Test Your Understanding of Maintenance Reserve Account
2 questions
Understanding MRA - 2
04:23
Modeling MRA - 1
09:19
Modeling MRA - 2
10:18
+Revolving Credit Facility
4 lectures27:31
Understanding Revolving Credit Facility - 1
02:14
Test Your Understanding of Revolving Credit Facility
2 questions
Understanding Revolving Credit Facility - 2
04:46
Modeling Revolving Credit Facility - 1
10:05
Modeling Revolving Credit Facility - 2
10:26
+Shareholder Loan
4 lectures22:06

In this lesson we will go over the shareholder loan and learn about: what is shareholder loan, why project sponsors may structure their investment as shareholder loan and some other important features of shareholder loan in project finance transaction.

Understanding Shareholder Loan - 1
03:06
Test Your Understanding of Shareholder Loan
2 questions

In this lesson, we will work out the shareholder loan calculation. We will work on the shareholder loan balance and on items that increase (interest expense rollover, drawdown) and decrease (principal repayment) shareholder loan balances.

Understanding Shareholder Loan - 2
04:24

In this excel based lesson, we will start modeling shareholder loan in our project finance model.

Modeling Shareholder Loan - 1
07:43

In this excel based lesson, we will continue with shareholder loan modeling and see how shareholder loan interest expense creates circularity in our project finance model.

Modeling Shareholder Loan - 2
06:53
+Automation and Breaking Circularity With Excel VBA
3 lectures25:40

In this lecture, we will learn why shareholder interest expense produces circularity in our project finance model.

Understanding Circular References in Project Finance Models
02:36
Test Your Understanding of Circular References
2 questions

Using the macros and vba coding in excel, we will carry out automation of the manual tasks of resolving construction debt or debt sculpting, when we have to manually use goal seek to bring those values to their target values.

Goal Seek Automation Macro
10:06

In this lesson, we will introduce circuit breaker to break the circularity in this project finance model.

Breaking Circularity in Project Finance Models
12:58
+Valuation Analysis
2 lectures20:11

In this lesson, we will explore the concept of time value of money and review NPV and IRR analysis.

Understanding Valuation, DCF & IRR
06:06
Test Your Understanding of Valuation
2 questions

In this lesson, we will perform valuation analysis based on the NPV and IRR methods in the project finance model.

Valuation, DCF & IRR
14:05
+Model Optimization
1 lecture05:56

In this lesson, will optimize our project finance model with respect to Blended Equity IRR, Debt Size and Toll Road Pass Fees.

Implementing model optimization
05:56
+Model Track Sheet and Checks
2 lectures17:33
Implementing Track Sheet
10:02
Modeling Checks
07:31
+Sensitivity and Scenario Analysis
2 lectures11:01
Sensitivity Analysis
04:39
Scenario Manager
06:22
+Equity First - Debt Drawdown Method
4 lectures24:16
Understanding Equity First Debt Drawdown Method
01:20
Equity First Funding - 1
09:57
Equity First Funding - 3
06:42
+Debt Sizing Automation
3 lectures24:21
Understanding Debt Sizing
02:41
Debt Sizing - 1
14:20
Debt Sizing - 2
07:20
+Revisiting Scenario Analysis
2 lectures21:33
Automating Scenario Analysis - 1
08:02
Automating Scenario Analysis - 2
13:31

Frequently Asked Questions

The course is divided into 4 parts.

First, we will review the basics of wind and solar projects development, so we understand all essential components of project finance transactions in the context of renewable energy. Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in excel. We will begin financial modeling in the third part, where we will build a financial model for wind and solar projects for the case when SPV pays taxes. And, finally, In the fourth part, we will review the peculiarities of the US renewable projects and build a financial model that takes into account the tax credits available in the US, and introduce to the new source of financing called tax equity.

Part 1 consists only of concept explainer videos and quizzes.

Each module in part 2 to part 4 comes with concept explainer video, a quiz and a financial modeling video. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.

The course is based on the wind project case study.

Video content length 14 hours 30 minutes.

You’ll also get personalized, one-on-one support from me, so you can get your questions answered every step of the way.

When you enroll in Project Finance Modeling course, you'll be able to ask me questions around how to apply what you're learning in the course (see the screenshots below).

It's kind of sitting in the class asking me questions but through an ongoing email chain comments whenever you need help.

Absolutely. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.

Yes! If you don’t feel like you’re mastering project finance modeling and analysis in the first 30 days of your enrollment, just email me and let me know. I’ll give you a full refund - no questions asked.

No catch here. My objective is to get my courses out to as many students that needed them as possible, which results in lower pricing as a starting point. Right now, I’m able to answer questions thoroughly at this price point. However, as enrollments continue to grow, I will probably need to increase enrollment price to reduce the number of students enrolling every month so I can continue to provide the level of personal attention I want to for everyone who decides to enroll in the course.

Course Curriculum

  Introduction to the Course
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  Part 1 - Basics of Wind and Solar Projects Development
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  Part 2 - Excel Refresher
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  Part 3 - Financial Modeling For Wind and Solar Projects (SPV pays taxes)
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  Modeling Energy Generation
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  Selling Energy
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  Operating Costs
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  Working Capital
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  PP&E and Depreciation
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  Tax Expense and Tax Paid
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  Equity, Dividends and Cash
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  Sizing the Debt for Wind and Solar Projects
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  Modeling Construction Phase
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  Term Loan
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  Project Finance Debt Ratios
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  Debt Service Reserve Account ("DSRA")
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  Shareholder Loan
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  Project Returns
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  Model Checks and Scenario Manager
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  Summary Sheet
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  Part - 4 Financial Modeling For Wind and Solar in US
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About us

FMO specializes in developing your financial modeling skills in project finance, investment banking, asset and wealth management. While we are a young firm, the team has decades of experience of complex financial transaction modelling.

The course is taught by Gregory Ahuy. Gregory started his career in investment banking as M&A analyst in London at Renaissance Capital - leading Russian investment banking firm https://www.rencap.com/. He was later relocated to Moscow to help with some of the biggest Russian M&A deals in mining and infrastructure sectors. Gregory continued his career at InfraRed Capital Partners, one of the largest infrastructure funds, focused on sourcing and executing greenfield and brownfield infrastructure projects in Eastern Europe. Later, Mr. Ahuy joined Eneco, one of the largest energy companies in the Netherlands where he led several renewable energy projects.
If you have any questions, please send us an email: [email protected]