Renewable Energy Project Finance

3 days 22-24 May 2017, Kuwait City Kuwait £3,000.00 Download brochure Add to basket
3 days 26-28 Jul 2017, New York United States $4,950.00 Download brochure Add to basket

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Overview

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This 3-day program teaches participants how to analyse renewable energy project financing and investment opportunities; with particular emphasis on intermittent technologies like solar and wind, explaining how they differ form conventional power facilities. Delegates will learn to structure project transactions to minimize risks and improve the prospects for future strong performance both in existing portfolios and new transactions.

Day 3 includes a final hands-on modelilng session where delegates will construct a model to forecast cashflows of an 8MW solar facility, estimate LCOEs and test the project for debt capacity and investor returns.

Who should attend

  • Financiers involved in project finance, investment analysis and syndicated lending
  • Government and Parastatal Executives involved in sponsoring/assessing project finance deals
  • Bankers (Commercial, Investment, Institutional, Corporate and Development)
  • Project Managers
  • Contractors
  • Investment Analysts
  • Project Sponsors
  • Contractors
  • Accounting and Legal Practices
  • Project Consultancies
  • Export Credit Agencies

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

New York
Meg Osius

The course director designs and delivers executive level training sessions as well as providing consulting services to a wide variety of organizations worldwide. Specializing in international project finance, capital markets, and risk management, she works with corporate investors, private and development banks, equipment suppliers, law firms etc. to structure viable financing packages for green-field projects and facility upgrades in the power, oil and gas, transport, social services and telecom sectors. Prior to establishing her own firm, she was a banker at JP Morgan Chase Bank where she structured international project transactions and advised clients on risk management.

The course director has published articles in the business press as well as guides covering international project finance, trade and export finance, foreign exchange, and risk management, as well as approaches to credit and financial analysis in emerging markets. She is a primary speaker in a series of video sessions created by the World Bank covering Sound Banking Principles in Emerging Markets.

The course director was Chair of the Technical Advisory Panel of the Public Private Infrastructure Advancement Fund (PPIAF). The fund supports technical assistance in emerging markets to encourage private involvement in infrastructure development. She received an M.B.A. from INSEAD, the European Institute of Business Administration, in Fontainebleau, France. Her B.A. degree is from Princeton University.

Guest Speaker:

The guest speaker, Principal of BJM International and BJM Solar Energy Finance, advises on International Project Finance transactions, primarily in the Renewable Energy Sector in Emerging Markets. Until recently, he was Managing Director for International Project Finance and Business Development at SunEdison, a wholly-owned subsidiary of MEMC Electronic Materials where he was responsible for raising debt and equity outside North America. Previously, he was Managing Director and Deputy General Manager at Nord/LB NY, responsible for Corporate, Project, Export and Trade Finance Origination activities in the Americas. Specializing in financing environmental and renewable projects, his team supported over 5000MW of renewable power projects in North America alone and ranked among the top 5 project finance lenders to the sector in the Americas. Prior to 1999, he was Director of Project Finance & Development at Raytheon Engineers & Constructors, responsible for arranging debt and equity financings for Hydrocarbon, Power, and Infrastructure projects. Before that he spent 20 years with various financial institutions, specializing in international finance. At Societe Generale, he was Vice President and Manager of the US Export Finance Group. At JP Morgan Chase where he spent 10 years, he was responsible for project financing in emerging markets with the support of US Eximbank and OPIC. Earlier in his career, the guest speaker was based in Tunis, responsible for Chase’s Trade finance activities in North Africa.

He received his MBA in finance from George Washington University and a Bachelor of Science from Georgetown University’s School of Business Administration.

Kuwait City
Margaret (Meg) Osius

Ms. Osius designs and delivers executive level training sessions as well as providing consulting services to a wide variety of organizations worldwide. Specializing in international project finance, capital markets, and risk management, she works with corporate investors, private and development banks, equipment suppliers, law firms etc., to structure viable financing packages for green-field projects and facility upgrades in the power, oil and gas, transport, social services and telecom sectors.  Prior to establishing her own firm Ms. Osius was a banker at JP Morgan Chase Bank where she structured international project transactions and advised clients on risk management.

Ms. Osius has published articles in the business press and co-authored several self-study guides covering international project finance, trade and export finance, foreign exchange, and financial futures, as well as financial analysis in frontier markets. She is a primary speaker in a series of video sessions on Sound Banking Principles.

Ms. Osius is a Director of British Caribbean Bank and Waterloo Holdings. Previously she was Chair of the Technical Advisory Panel of the Public Private Infrastructure Advancement Fund (PPIAF).  The fund supports technical assistance in emerging markets to encourage private involvement in infrastructure development. She received an M.B.A. from INSEAD, the European Institute of Business Administration, in Fontainebleau, France.  Her B.A. degree is from Princeton University.

Venue

Kuwait City

Kuwait City Hotel

This programme takes place on a non-residential basis at a central Kuwait City hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

New York

New York Hotel

This program takes place on a non-residential basis at a New York hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

As with all programmes on-site administrators are with you throughout the programme to ensure smooth administration and group interaction.

Related Courses

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Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

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Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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Agenda

Agendas are localised, please select your preferred location.

Day 1

Themes: Structuring Renewable Projects and Creating a Security Package; Discovering the Most Efficient Sources of Debt Finance Introduction to Cash flow Forecasting Metrics.

 
Overview of Renewable Energy Project Financing

  • Global Growth of the Market: Countries, Sectors, Drivers of growth
  • Energy usage and investment globally
  • Renewable Energy Projects and Comparative Levelized Cost of Energy (LCOE)
     - Wind Farms
     - Solar Power
     - Landfill Gas
     - Geothermal Energy
     - Small-scale Hydro
  • Global Incentive Programs 
     - Feed-in tariffs (FIT)
     - Renewable portfolio standards (RPS)
     - Renewable Energy Credits (RECs)
     - Depreciation, Allowances, etc.
     - Public Tendering
     - Other Grants and Incentive by Country
  • Financing Structures and Players

Renewable Project Risk Identification and Allocation

  • Different Approaches/Risks Compared to Conventional Power Project Finance
     - Construction and Warranty Issues
     - Land Acquisition
     - Environmental and Permitting Considerations
     - Technology Advances
     - Operational Issues
     - Transmission and Interconnection
     - PPA Considerations: Availability, Energy and Environmental Credits

Workshop: Assessing Debt capacity and Investment Opportunities
             
              - Forecasting Techniques and Limitations
              - Cashflow Sensitivity Analysis and Creditor Considerations
              - Sponsor Return Calculations
              - Tax-equity Investors and Considerations

Case study: Delegates break into small groups to evaluate the security package for a wind power plant.  They will look at financing choices, structure, project cash flows, and quantify their risk assessments.

End of Day 1 

Day 2

Themes: Legal Issues, Bank Finance, Capital Market Issuance; Political Risk Support; Leasing and Islamic finance


Further Legal Issues and Contractual Considerations for Intermittent Power

  • Key Contractual Agreements and Structuring Considerations
  • Power Purchase Agreements (Pricing Structures, Milestones and Penalties)
  • Equipment Supply and Timelines
  • Balance of Plant (BOP) Agreements
  • Land Lease
  • Shareholder Structures

Bank Debt and Capital Markets as Funding Alternatives

  • Bank Debt Term Sheet Considerations, Club Loans and Syndications
  • Domestic and International Capital Markets Access: Eurobonds, Private  Placements
  • Rating Agencies, Basel Accords, and Credit Wraps

Electricity Price Hedging

  • Commodity Pricing and Hedging Mechanisms
  • Hedges for Renewable Energy Projects
  • Leasing Structures for Renewable Projects

Leasing Structures and Applications in Renewable Projects

  • Evaluating Cost
  • Islamic Structures: Ijara and Istisna

Case Examples: Wind and Solar


Focus on Solar power

  • Solar Photovoltaic Systems and Concentrating Solar Thermal (CST)
     - Thin Film vs Crystalline Technologies
     - Tracking Systems
     - Issues of Scale, Cost and Application
     - Financing Challenges and PPA solutions
     - Roof and Ground Leasing issues; Other Site Requirements
     - Technology Warranties
  • Financing Standards and Requirements; DSCRs etc.

Case study: Financing a photovoltaic solar park.
Evaluating the security package and forecast outcomes.

End of Day 2

Day 3

Themes: Export Credit Agencies, Development Banks and Other Forms of Support; Cashflow Modeling Workshop 


Developing Projects in International Markets

  • Sources of Credit and Risk Support for International Renewable Projects
  • Official Political Risk Enhancement (ECAs, Development Banks and Others)
  • Private Sources of Political Risk Insurance

Workshop: Building a Cashflow Model for a 8MW Solar facility

Delegates will assess a wide range of scenarios in order to test a limited recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, ‘dos’ and ‘don’ts’s as well as the practical use of models for negotiations.

Structuring the Model and Organizing the Data to Create a Cashflow Statement

  • Developing the Assumptions Page
  • General Plant Parameters
     - Installed Plant Capacity
     - Panel Efficiency
     - Insolation and Panel Wattage
     - Operating Months and Degradation
  • Project Capital Costs 
     

Financing Section

  • Equity First or Pro Rata
  • Manually Designed Equity Subscription
  • Draw-down of Debt Linked to Specific Contracts or Expenditures or in a Hierarchy

Developing the Profit and Loss and Balance Sheet

  • Factoring in Reserves
  • Considering Currencies
  • Tax Calculations

Ratios and Sensitivity Analysis: Objectives and Limitations

  • Measuring Debt Capacity and Investor Return
  • Using Modeling Output for Initial Project Vetting
  • Supporting on-going Negotiations

  
Self-test, Summary and Wrap-up of Modeling Workshop

End of Program

Day 1

Themes: Structuring Renewable Energy Projects; Cashflow Considerations: Focus on Intermittent Technologies

 Overview of renewable energy project financing

  • Global growth of the market: countries, sectors, drivers of growth
  • Various types of renewable energy projects and comparative costs
    • Wind powered electricity plants
    • Solar power
    • Landfill gas projects
    • Bio-mass and bio-fuels
    • Geothermal energy
    • Small-scale hydro
  • Snapshot of global incentive programs designed to encourage renewable energy
    • Energy usage and investment globally
    • Feed-in tariffs
    • Renewable portfolio standards and renewable energy credits
    • Depreciation, allowances, etc.
    • Public tendering
    • Other grants and incentive by country
  • Financing structures and players

Risk identification and allocation in a wind project financing

  • Different approaches/differing risks from conventional power project finance
    • Construction and warranty issues
    • Technology advances
    • Operational issues
    • Transmission, interconnection and tariffing
    • PPA considerations: availability, energy and environmental credits

Workshop: cash flow modeling for varying constituencies

  • Building a model: forecasting techniques and limitations
  • Cashflow sensitivity analysis and creditor considerations
  • Sponsor return calculations
  • Tax-equity investors and considerations

Case study: financing a wind power facility

Delegates break into small groups to evaluate the security package for a wind power  facility. They will look at financing choices, structure, project cash flows, and quantify  their risk assessments.

Day 2

Themes: Legal Issues; Sources of Finance; Hedging; Solar Power

Further legal issues and contractual considerations for wind and intermittent  power producers

  • Key contractual agreements and structuring considerations
  • Power purchase agreements (pricing structures, milestones and penalties)
  • Equipment supply and time lines
  • Balance of plant agreements
  • Land lease
  • Shareholder structures

Bank debt and capital markets as funding alternatives

  • Bank debts and syndications
  • Domestic and international capital markets access: Eurobonds, private placements
  • Market convergence
  • Rating agencies, Basel Accords, and credit wraps

Electricity price hedging

  • Commodity pricing and hedging mechanisms
  • Gas and heat-rate hedges for wind and other renewable energy projects

Leasing structures for renewable projects

  • Leasing structures and applications in renewable projects
  • Evaluating cost

Case examples: wind and solar


Solar power

  • Solar photovoltaic systems and solar thermal
    • Issues of scale, cost and application
    • Financing challenges and PPA solutions
    • Roof and ground leasing issues; other site requirements
    • Technology warranties
  • Financing standards and requirements; DSCRs etc.

Case study: financing a photovoltaic solar park
Evaluating the security package for a 8MW photovoltaic (PV) solar park.

Day 3

Themes: Base Load Plants; Bio-mass, Hydro and Geothermal Power; Projects in Emerging Markets

Bio-mass and bio-fuel projects

  • Wood/power generation
  • Bio-mass and bio-fuels: What are the prospects for these technologies?
  • Emissions, waste disposal, and other regulatory issues

Case example: Wood-fired bio-mass project

Developing projects in international markets

  • Sources of credit and risk support for international renewable projects
  • Using Export Credit Agencies, Development Institutions to Enhance Deals
  • Private Insurers and Mono-lines

Case discussions: Projects in emerging markets

Base load renewable producers: geothermal and hydro plants

  • Where are these facilities located?
  • Technologies: dry and flash steam plants; binary plants
  • Resource assessment and drilling risk
  • Construction and transmission issues
  • Government role

Case example: Geothermal production

 Hydroelectric facilities

  • Favorable features and drawbacks of hydro-power
    • Conventional hydro facilities (medium and large)
    • Small-scale run-of-the river plants
    • Pumped storage
  • Financing considerations
  • Structuring investment and approaches to project solicitation

Case Study: Financing a small-scale hydro facility
Participants will evaluate the  financing package for a small-scale hydro facility. Transaction requires political risk  mitigation as well as consideration of merchant power project risks.

 Self-test and Wrap –up


 

Why us


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