Scenario Analysis with Diagrams, Spinners and Reset

This page illustrates how to create scenarios with sensitivity and diagrams to illustrate contract structuring and sensitivity of model results to operating and financial factors.  The method allows you to adjust sensitivity factors for different variables and at the same time change the overall scenario. The method also allows you to re-set all of the spinner boxes to alternative values such as the base case. By using a combination of spinner boxes and scenario analysis you can create a diagram that could be used to negotiate contract terms and the debt structure. An illustration of this concept is shown in the multiple screenshots below.  The first screenshot illustrates a simple Independent Power Project example with different structured penalties.  The file that has the model which contains the techniques to create spinner boxes. The second screenshot illustrates the use of spinner boxes and scenarios in the context of a much more detailed solar model that contains multiple debt issues, circular reference problems and sculpting.  The third and fourth screenshots demonstrate the spinner and scenario method in the context of tax equity in the U.S. and reserved base lending.

 

 

Independent Power Producer Model with Diagram of Project Structure and Scenario and Sensitivity Analysis

 

 

 

 

 

The remainder of this web page illustrates how to create these diagrams with the spinner boxes and scenario analysis.  To begin the analysis that allows this kind of spinner boxes combined with scenario analysis you can start with standard scenario analysis using a code number and the INDEX function.