Energy Finance and Investment Training Course

Participants can convert energy-market structures and price mechanisms into revenue assumptions.

• Wholesale market designs: energy-only, capacity, balancing and ancillary services
• Merit-order pricing and dispatch effects on generator realised revenue
• Capture price calculated for variable renewable generation portfolios
• Fuel-price pass-through provisions tested within regulated tariff formulas
• Forward curves constructed from spot prices, futures and market expectations
• Basis risk assessed between commodity benchmarks and local settlement prices

Participants can translate technical asset data into model-ready operating assumptions.

• Capacity factor estimated from resource data, availability and curtailment assumptions
• Production profiles modelled using decline curves, degradation and outage schedules
• Heat rates converted into fuel consumption and variable operating costs
• Maintenance plans separated into routine, major overhaul and lifecycle expenditure
• Transmission losses and grid constraints incorporated into net delivered volumes
• Technical assumptions documented with source, owner, rationale and update frequency

Participants can design an auditable energy financial model with clear calculation logic.

• Model architecture separates inputs, calculations, outputs and control checks
• Timeline conventions aligned with construction, operations, debt and distributions
• Assumption registers record sources, units, dates and approval status
• Financial statements linked through income, cash flow and balance-sheet schedules
• Circularity managed using switch variables, iterative calculations and debt plugs
• Error checks flag balance-sheet breaks, negative cash and inconsistent units

Participants can model construction-period cash flows, contingencies and completion risks.

• Engineering, procurement and construction costs phased against construction milestones
• Contingency allowances distinguished from escalation, claims and scope changes
• Interest during construction calculated from drawdown timing and debt rates
• Construction cash flow includes retention, advance payments and working capital
• Completion tests defined using physical, performance and financial conditions
• Delay scenarios quantify liquidated damages, revenue loss and funding shortfalls

Participants can calculate project and equity returns from a structured energy cash-flow model.

• Free cash flow derived from revenue, operating costs, tax and capital expenditure
• Project NPV calculated using unlevered cash flows and WACC
• Equity IRR calculated after debt service, reserves and distributions
• Modified IRR compared with IRR for non-standard cash-flow patterns
• Payback period assessed alongside value-based return measures
• Return waterfalls distinguish project, sponsor, lender and government cash flows

Participants can select and test discount rates appropriate to energy assets and cash flows.

• WACC assembled from cost of equity, cost of debt and capital weights
• CAPM inputs assessed using beta, risk-free rate and market-risk premium
• Country risk premiums evaluated against political and convertibility exposures
• Asset-specific risk adjusted through cash flows rather than arbitrary premiums
• Nominal and real discount rates matched with corresponding cash flows
• Discount-rate sensitivities compared with price, volume and cost scenarios

Participants can distinguish project-finance structures, funding sources and allocation of risk.

• Special-purpose vehicles isolate project assets, contracts and liabilities
• Capital stacks compare senior debt, mezzanine, equity and concessional finance
• Sponsor support assessed through guarantees, completion undertakings and equity commitments
• Security packages cover shares, accounts, contracts, assets and insurance proceeds
• Intercreditor arrangements define ranking, enforcement rights and payment priorities
• Development finance participation assessed for tenor, pricing and policy conditions

Participants can size and structure debt against projected project cash flows and lender requirements.

• Cash flow available for debt service calculated from operating cash flows
• DSCR calculated for periodic debt service under base and downside cases
• LLCR and PLCR calculated from discounted future available cash flow
• Debt sculpting aligns principal repayments with seasonal project cash generation
• Reserve accounts modelled for debt service, maintenance and liquidity needs
• Financial covenants tested for distribution locks, defaults and cure rights

Participants can evaluate energy contracts for revenue certainty, counterparty exposure and model effects.

• PPA payment structures compared: fixed tariff, indexed tariff and merchant exposure
• Take-or-pay clauses translated into contracted volume and revenue floors
• Availability guarantees linked to performance deductions and liquidated damages
• Curtailment provisions allocated between generator, grid operator and off-taker
• Indexation formulas model inflation, fuel, exchange-rate and escalation components
• Off-taker credit risk assessed through ratings, guarantees and termination payments

Participants can quantify fuel-cost exposure and assess supply-contract protections.

• Fuel supply contracts assessed for quantity, quality, price and flexibility
• Delivered fuel cost built from benchmark, transport, losses and taxes
• Take-or-pay commitments modelled against dispatch and storage capacity
• Commodity exposure separated into price, volume, basis and timing risks
• Storage economics evaluated using inventory carrying costs and optionality value
• Supply interruption scenarios quantify replacement cost and operational consequences

Participants can assess whether hedging instruments improve forecast cash-flow certainty and risk limits.

• Forward contracts lock future commodity prices without upfront premium
• Swaps exchange floating-price exposure for fixed-price payment streams
• Options protect adverse prices while retaining favourable market participation
• Collars combine purchased options and written options within price boundaries
• Hedge ratios determined from forecast exposure, liquidity and risk appetite
• IFRS 9 hedge-accounting requirements considered for qualifying hedging relationships

Participants can incorporate material tax, accounting and fiscal effects into energy investment analysis.

• Depreciation schedules model tax shields and deferred-tax timing differences
• Loss carry-forwards tracked against taxable income and expiry restrictions
• Royalties modelled using volume-based, value-based and profit-based formulas
• Production-sharing mechanisms allocate cost recovery, profit petroleum and government take
• IFRS 16 lease effects separated from operating cash-flow classifications
• Decommissioning provisions modelled under IAS 37 and asset retirement assumptions

Participants can value energy assets and identify transaction adjustments affecting bid decisions.

• Discounted cash flow valuation reconciles enterprise value and equity value
• Trading multiples compared using EV EBITDA, EV MW and EV reserves
• Precedent transactions adjusted for market cycle, geography and contract quality
• Net debt and working-capital adjustments incorporated into purchase-price bridges
• Contingent consideration modelled for earn-outs, production targets and price triggers
• Synergy cases separated from stand-alone value and execution risk

Participants can compare energy investments and construct portfolio choices under capital constraints.

• Portfolio cash flows aggregated across technologies, geographies and contract types
• Correlation analysis identifies concentration in price, weather and counterparty exposures
• Mean-variance analysis compares expected return against portfolio volatility
• Capital rationing ranks projects using NPV, strategic constraints and funding limits
• Real-options analysis values expansion, deferral, abandonment and repowering choices
• Portfolio dashboards track committed capital, expected returns and risk limits

Participants can quantify uncertainty using structured scenarios, sensitivities and probability-based methods.

• Sensitivity tables isolate return effects from individual input changes
• Scenario sets combine coherent market, operational, policy and financing assumptions
• Tornado charts rank variables by influence on project NPV
• Monte Carlo simulation estimates distributions for returns, coverage ratios and value
• Probability-weighted cases distinguish expected value from downside resilience
• Risk registers connect causes, controls, owners, indicators and financial impacts

Participants can integrate carbon costs, climate exposures and transition risks into investment assessments.

• Carbon-price assumptions incorporated into fuel costs, revenues and valuation
• Emissions intensity calculated using fuel characteristics, heat rates and output
• Physical climate risks assessed for flooding, heat, drought and wind exposure
• Transition scenarios test demand shifts, regulation and technology substitution
• Internal carbon pricing compared using shadow-price and compliance-cost approaches
• Climate disclosures linked to IFRS S2 governance, strategy and metrics

Participants can conduct focused financial due diligence and review an energy model for decision-critical weaknesses.

• Due-diligence scopes separate commercial, technical, legal, tax and financial workstreams
• Model review tests formulas, assumptions, units, signs and timing conventions
• Revenue forecasts reconciled against contracts, dispatch assumptions and market evidence
• Operating-cost benchmarks compared with asset age, technology and maintenance plans
• Red flags documented with financial impact, evidence gap and recommended action
• Data rooms organised around material contracts, permits, models and reports

Participants can present energy investment conclusions clearly to decision makers and challenge panels.

• Investment papers structure recommendation, rationale, valuation, risks and approvals sought
• Executive summaries state decision, value drivers and material downside exposure
• Assumption tables distinguish base case, downside case and management case
• Sources and uses schedules explain funding requirements and transaction economics
• Risk mitigations paired with accountable owners, milestones and contingency triggers
• Committee questions anticipated on value, funding, contracts and downside resilience

Participants can build, review and present a complete energy investment case with model, risk analysis, financing recommendation and investment-committee paper.

• Case assumptions consolidated from market, technical, contractual and financing evidence
• Integrated model produces statements, returns, debt metrics and valuation outputs
• Base, downside and upside cases tested against approval thresholds
• Financing structure selected using debt capacity, covenants and sponsor objectives
• Investment-committee paper prepared with recommendation, risks and decision requests
• Peer review challenges calculations, assumptions, mitigations and presentation clarity