Manuscript - Financing Modeling of Renewable Energy Projects

Case Study
FINANCING IN RENEWABLE ENERGY PROJECT
Background
You have been instructed to build a financial model to handle renewable projects
such as wind, solar and hydro. The objective is to come up with the PPA energy
price, which results in an equity return of 10%, which will be used in negotiations
with PLN.
The financial model has to be capable to generate the construction debt size based
on the project’s cash flows.
You have recently met with a possible lender, which can arrange the financing to
the project, and received an indicative term sheet for construction and O&M
proposals.
For your analysis, you should assume the financial close date and construction
start date of December 31, 2019. The construction shall be complete in 12
months, at which time operations shall start. The model shall be based on
quarterly periods.
The case sample that will be explained in this book is on-shore wind.
The key assumptions of on-shore wind project are as follows:
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