Wind farm investment model

Purpose
The purpose of the model is to enable the user to assess the viability of a wind farm project or investment
 
Outputs
Integrated Financial Statements including Income Statement, simplified Balance Sheet and simplified Cash Flow
Results also include day 1 investment requirements split by equity and debt, valuation and IRR
 
Timeline
The model has an annual timeline that runs for 30 years
A flexible model start date
The ability to enter historical Opening Balance sheet
 
General
The ability to update the model units
The model provides check and commercial alert messages (see debt assumptions below)
 
Sales
Includes the sale of energy and renewable energy subsidies
Volume is based on entering megawatt (MW) capacity, economic life and production efficiency of the site
User enters the real energy prices in MWh
Inflation is applied
Subsidies are entered per MWh, by unit price, in terms of availability over the life of the project and with inflation applied
 
Costs
Include fixed cost per MW and variable costs per MWh
Cost inflation can be applied
 
Fixed assets
Depreciation is calculated on a straight-line basis ovfer the remaining life of the project
 
Working capital
Includes debtors and creditors
Working capital assumptions are calculated based on a days assumption
 
Tax
Enter an effective tax rate
Tax is paid in the year in which it accrued
Interest deductability limits can be entered and are based on a percentage of EBITDA
 
Senior debt
Entered for the acquisition
The user enters the debt term, drawdown, margin, upfront fee and any proportion that might be hedged
The user has the option to enter sizing limits based on a maximum percentage of net value of fixed assets and/or based on minimum debt service cover ratio (DSCR). When these limits are exceeded the commercial alert will be triggered in F2 on the Assumptions sheet to warn the user of a breach
 
Acquisition assumptions
User enters the acquisition costs and the equity investment required