Wingarra BMI has undertaken business modelling and financial modelling assignments for a number of companies either planning or undertaking renewable energy (RE) projects. In doing so, it has developed a particular expertise in designing and constructing customised models which fully integrate sophisticated power output calculators within financial feasibility assessment and financial projection models which also typically include Renewable Energy Certificate (REC) revenue, valuation, equity allocation and return on investment modules. See, for example, the outline and screenshots at the Financial model example - Company B page.

These Excel-based integrated models allow easy and repeated testing of any combination of technical and financial variables in order to calculate likely cashflow requirements under all anticipated operating scenarios. They thereby allow project sponsors to undertake detailed feasibility assessments by testing the sensitivity of outputs - revenues (including REC), direct costs, expenses, net assets, cashflows, etc - to changes in key technical and financial variables. They also calculate indicative entity valuations, debt and/or equity funding requirements, equity %ages to be offered to investors and returns on investment, and can therefore be used to underpin both investment proposals and debt funding applications.

Click here for a screenshot of an example structure for an integrated RE project model.

Note that this example is indicative only. To be useful, models need to be customised to suit the requirements of different projects on a case-by-case basis. Technical variables modelled, for example, will vary widely, depending on such factors as:

• type of technology/technologies employed
• equipment configurations
• mechanical efficiencies
• conversion efficiencies
• generation unit locations/site profiles
• hourly/daily/weekly/monthly/yearly operation cycles
• resource (sun, wind, tide, wave, etc) intensity and fluctuation patterns across operation cycles
• transmission losses
• peak and off-peak tariffs
• maintenance profiles.

While the models described above primarily focus on natural resource-based technologies such as wind, solar, wave and tidal, they can also be adapted for other generation technologies such as waste gas, cogeneration, etc, as well as for ancillary technologies such as energy storage.

Like us to prepare a proposal for a renewable energy modelling assignment for your company or project? Please go to our Request for proposal page for details.