In the last decade an overall investment of some $1.5 trillion were flowing globally into the renewable sector and power capacity continues to grow. However, as policy support is changing we see increasing competitiveness emerging around renewable power projects and their business models. This five day demanding course will provide a comprehensive and detailed understanding of the drivers of competitiveness for renewable power projects. This will be achieved by a course long group work, where delegates are asked to pitch for a renewable energy tender and present a respective project analysis applying new concepts introduced and share their own experience.
The week will start in setting the stage explaining how electricity markets work and the peculiarities renewables impose on electricity pricing and grid integration, we will then investigate the various policy instruments applied and what their outcome is in terms of creating market possibilities. In the afternoon the tender documents will be issued and delegates will have time to familiarize themselves with the task and assess open questions.
The aim of the next day will be to understand technology trends of the various renewable power technologies and how they compare and differ in terms of cost, production and energy uncertainty. We will then blend the various market and technology drivers together to investigate financial attractiveness from a sponsor’s and lender’s point of view applying project finance metrics. In order to achieve financial close we will discuss Risk Mitigation process and key elements from PPA, EPC, O&M project contracts and how this is reflected in loan term sheets.
On the final day we will discuss how projects are valued at different stages and by different equity investors. The groups are required to raise equity for their tender project from a long list of investors. Based on this we will present and evaluate the various tender proposals and declare a winner who will receive a surprise prize! Throughout the week we will have debunked certain myths about Renewable Energy and gain hands on realistic view on the sector development and competitiveness.
The basic structure of the course will be delivered in presentation style to introduce the various concepts in a straight forward way. Each module will be enriched by using additional materials in form of spreadsheets, financial models, articles, online tools and video clips to show real world case studies.
Participants will also receive access to a shared cloud folder with in-depth background reports and all background course material in electronic format. Core element will be the preparation of renewable energy tender throughout the week.
Group work - renewable energy tender
Based on real world tenders, delegates will receive on the first day documents of a factious government asking international developers and investors to participate in a competitive bidding process. Each day we will reserve the second afternoon session to develop the proposals till each group is able to finalize their bid and present it on the last day. Participants will have to make decisions from a selection of projects, EPC and O&M offers and find an optimal project finance solutions from commercial bank loans, Export Credit Agencies and Multilateral Banks and raise equity from third party investors. Participants are encouraged to apply their new knowledge, share their own experience and have heated discussion within their group to enhance the practical learning experience! In the final day, the groups will present and discuss the various proposals and a tender winner will be declared receiving a surprise prize!