Renewable Energy Project Finance

3 days 26-28 Jul 2017, New York United States $4,950.00 Download brochure Add to basket

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Overview

Power plants generating energy from renewable resources such as wind, solar, biomass, geothermal, and hydro technologies have found favour with lenders and investors. Even in difficult markets renewable projects have benefited from pressing needs for electrical production, government support schemes, industry restructuring considerations, as well as utility commitment to adding renewables to the resource mix.

This three day course examines approaches to financing such projects; focusing on how these transactions differ from more conventional thermal based deals. Peculiarities like resource intermittency, location constraints, transmission, and interconnection will be described, as well as renewable power purchase agreements, and other project contracts.

Examples of deals that have been structured to take maximum advantage of the growing variety of global incentives and tax breaks will be used extensively. Attention will also be placed on many of the new and emerging financing vehicles and support schemes.

Methodologies

This course uses lectures supported by case studies and practical exercises to ensure that you leave the course, ready to apply your new knowledge.

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.

Venue

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.

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Agenda

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


 

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