Manuscript - Financing Modeling of Renewable Energy Projects

The chronology of model building
based on the scheme of capex funding
Scheme of Capex Funding
First, the debt model is built by a static debt size which is based on a portion of
construction cost. Second, the debt model is built by a dynamic debt size which is
based on the project cash flow. Since project cash flow is influenced by the tax
deductibility of interest charged on the debt size, there will be a circular reference. VBA
macro is created to mitigate this circular reference. In the second scheme, DSRA will be
introduced and this is will affect to the total of financing cost. Third, shareholder loan
will be included in the model and now the project cash flow will be influenced by the tax
deductibility of interest charged on debt size and also shareholder loan.
Below is the list of 6 files to describe the chronology of the step by step how to build the
financial model.
I. Static Debt size (Debt size based on a portion of Construction Cost)
→ File Reference: 1. Static Debt start.xlsx and 2. Static Debt end.xlsx
II.
Dynamic Debt size (Debt size based on project cash flow that influenced by the
tax deductibility of interest charged on debt size)
→ File Reference: 3. Dynamic Debt start.xlsx and 4. Dynamic Debt + DSRA.xlsx
III. Dynamic Debt size + Shareholder loan (Debt size based on project cash flow
that influenced by the tax deductibility of interest charged on debt size and
shareholder loan)
→ File Reference: 5. Dynamic Debt+DSRA+SHL.xlsx and 6. Dynamic Debt end.xlsx
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