Edward Bodmer – Project and Corporate Finance

Resolving BS in Project Finance

  • Home
  • Project Finance
    • Featured Project Real Estate Models (Class Files)
      • Energy Project Finance – Solar, Wind, Thermal, Hydro
        • Solar Project Finance Models
        • On-Shore and Off-Shore Wind Project Finance Models
        • Project Finance for Thermal Electricity Plants
        • Hydro Project Finance Models
      • Infrastructure (Toll Roads, Bridges, Air, Sea & Bus Ports)
        • Toll Road Project Finance
        • Sea Port Models
        • Airport Project Finance Models
      • Real Estate (Hotels, Buildings, Mixed Developments)
        • Hotel Project Finance
        • Commercial Real Estate and Lease Roll
        • Residential Real Estate Modelling
        • Mixed Development and Portfolios of Projects
        • Collateral Debt Obligations and Other
      • Resource (Mining, Oil, Agriculture)
        • Mining Models
        • Downstream Oil and LNG
        • Agriculture Project Finance
        • Upstream Oil Project Finance Models
      • PPP’s (Perpetual Pending Projects)
        • Value for Money Analysis
        • Other PPP Examples (Parking and Street Lights)
        • University PPP Examples
      • Other (Paper, Manufacturing, Storage, Shipping)
        • Manufacturing Project Finance
      • Project Finance Credit Analysis Examples
    • Torture Chamber Financial Modelling Interviews
      • Step by Step Process to Complete Exams
      • Project Finance Interview Cases
      • What to Do and Not to Do
      • Unreasonable Exams
      • Combatting Modelling Arrogance
      • Rate Base and Merchant Market Exams
    • Building a Finance Model
      • Project Finance Links and Guide
      • A-Z Project Finance Modelling & Guide
        • Original A-Z (More Basic) Project Finance Modelling
        • Construction Analysis and EPC
        • Operating Tax, Depreciation and Currency Adjustments
        • Debt Service Reserve Accounts
        • Cash Flow Waterfall and Financial Statements
      • Modelling Religion, Criminal Behaviour and Time Lines
        • High Crimes in Project Finance Modelling
        • Flexible Timelines in Project Finance Models
        • Audit Tests in Project Finance Models
        • Structure and Setting-up Order of Modules
        • Sheet Structure in a Financial Model
        • Transparent Formulas in Project Finance Models
        • Model Audits
      • Expiration of NOL in Project Finance
      • Working Capital in Project Finance
      • Learning Crimes from Horrible Models
      • Treatment of VAT in Project Finance Modelling
    • Structuring Debt in Project Finance
      • Structuring Guide No Blah, Blah, Blah
      • Project Finance Theory
      • Debt Sizing
        • Different Debt Size – Cash Flow (P90/P50), Debt/Cap
        • Debt Sizing Philosophy and Debt/Cap vs DSCR
        • Debt Sizing and Cost Padding with Debt/Capital Constraint
        • Taxes, Step-up Margins and Other Debt Sizing Issues
      • Debt Funding
        • Funding of Construction: Pro-Rata versus Equity Up-Front
        • Pre-COD Operating Cash Flow
        • Equity Bridge Loans (EBL)
        • IDC on Subordinated Debt and Project Cost
      • Debt Repayment
        • Sculpted, Annuity and Equal Installment Economics
        • Repayment and Multiple Tier Capacity Payment
        • Reverse Sculpting with O&M Contracts
        • Ballon Payments and Sinking Funds
      • Interest Rates and Fees
        • Theory of Credit Spreads in Project Finance
        • Implied Probability of Default
        • ECA Financing, Premium and Debt IRR
        • Floating and Fixed Interest Rates in Project Finance
        • Interest Rates in Different Currencies and Inflation Rates
      • Re-Financing Analysis
        • Re-financing Mechanics
        • Mini-Perms and Re-financing
      • Credit Protections
        • LLCR and PLCR Complexities and Meaning for Break Even
        • DSRA with DSCR and LLCR
        • Cash Sweep and Risk versus Return
        • DSRA Economics with L/C and Funded
        • Covenants with LLCR and Prospective DSCR
        • Modelling Defaults with Senior and Sub Debt
      • Developer Cost, Development Fee, EBL
        • Development Cost Analysis
        • Development Fees, Profit Sharing
      • Actuals, Model Review, Currency, Funds
        • Incorporating Actuals in Project Finance
        • Reviewing Models or Laying on a Bed of Nails
        • Currency Adjustments, Taxes and Debt
        • Monthly Model with Semi-Annual Debt Service
    • Debt Sculpting in Project Finance
      • Sculpting in Project Finance — Part 1
        • Sculpting Basics – Non-Constant Interest Rates
        • Debt to Capital Constraint and Constant DSCR
        • Sculpting and Grace Period
        • Taxes in Sculpting and Circularity
        • Multiple Issues and Multiple Currencies
      • Sculpting in Project Finance — Part 2
        • Sculpting and Debt Fees with DSRA L/C Fees
        • Interest Income on the DSRA and Sculpting
        • DSRA Cash Flow Movement and Sculpting
      • Sculpting With Multiple Issues
        • Sculpting with Multiple Issues
        • Separation into Balloon Payment and Sculpting
        • Sculpted and Fixed Repayment Issues
        • Multiple Issues Using SUMIF
      • Sculpting with Debt to Capital, Changing DSCR
        • Sculpting Fixed Debt, Changing DSCR — Simple Case
        • Sculpting Fixed Debt, Goal Seek and Data Table
        • Fixed Debt,Changing DSCR – User Defined Function
        • Multiple Debt Issues, Fixed Debt, Changing DSCR Average Debt Life
      • Funding and Sculpting Exercise
      • MRA, Revolver, Negative Repayment
    • Circular Reference and Pain Points
      • Solving the Pain Points in Project Finance Modelling
      • Suite of Circular Reference Solutions
      • Circular Reference with UDF – Basic On-Line Course
        • Implementing the Parallel Model
        • Philosophy of Circular References
        • Writing Your Own UDFs for Circular References
        • Circular Reference – DSRA
        • UDF for Simple IDC
      • Technical Details of Working with the UDF
        • Adjusting Equations and Variables in the Parallel Model
        • Adjusting Reports in Parallel Model
        • Reading Data into UDF
      • Template Circular Reference Solution
        • Pre-COD Financing Issues with UDF
        • Multiple Debt Issues with UDF
        • Complex Sculpting and Sizing Issues with UDF
    • Tax Equity Partnerships and Leases
      • A-Z Tax Equity Modeling
        • Tax Equity Overview and Strategy
        • Tax Equity Model with Fixed Flip Date
        • Yield Based Flip and Partnership Allocation
        • Detailed Model with Periodic Cash Flows
        • Wind Projects and PAYGO
        • Tax Equity Financing with Bridge Loan and Back Leverage
        • Sale Leasback
        • Inverted Lease
      • Capital Accounts, DRO’s, Leases
        • Inside Capital Account (704(b))
        • Outside Basis (Tax Basis)
        • Deficit Reduction Obligation
        • Non-Recourse Debt and Minimum Gain
    • Equity Distribution, Developer Incentive, IRR Issues
      • Performance Incentives for Developers
      • IRR is not B.S
        • McKinsey Critique of IRR is B.S.
        • IRR Mathematics and MIRR Problems
      • Resolution of Problems with IRR
        • IRR with Changing Discount Rates and Assumed Sale
        • Payback Period
        • Alternative to IRR – Weighted Average ROIC
    • Consolidation of Projects
      • Overview of Consolidating to Fund
      • Step by Step Creation of Complex Consolidation
      • Macros for Consolidating Projects
      • Lease Analysis
      • Creating a Master Database
      • Financing the Consolidated Portfolio
    • Structuring Contract Incentives and Penalties
      • General Notion of Back-to-Back Contracts
      • Contracts and Risk/Return Tradeoffs in Project Finance
      • Distortions from Contract Penalties and Efficiency
      • Economics of Incentives and Penalties
      • Analysis of Counter-Party
    • Project Finance Theory and Marriage Contracts
  • Corporate Finance
    • My Book New: Bad Finance
    • Featured Corporate Finance Models
      • M&A and LBO Concepts and Featured Models
      • Corporate Models of Crisis, Amazon and A-Z Modelling
      • Model from ROIC and Growth to Derive Value
      • Food and Beverage with Advanced Valuation
      • Air Freight and Corporation as Portfolio of Investments
      • Financial Institution Analysis – Banks and Insurance
      • First Solar Corporate Model and Danger of High ROIC
      • New Store Analysis and Construction Company
      • Other Corporate Models
    • A-Z Step by Step Corporate Model
      • Overview of Corporate Model Theory and Practice
      • Computation of ROIC After Bringing In Data to the Model
      • Assumptions Section of Corporate Model
      • Structure of a Corporate Model
      • Structuring Valuation in Corporate Model
      • Converting Standalone Model to Acquisition Model
    • Hellish Corporate Modelling Interviews
    • Building a Corporate Model
      • Corporate Finance Theory and Magic Potion
      • Case Study on Corporate Model
      • Corporate Model Basic A-Z On-Line Course
      • Learning from Horrible Corporate Models
      • Computing NOL with Expiration
      • Annual Sums in Monthly or Quarterly Models
    • M&A Courses and Exercises
      • M&A Course Exercise Files
      • M&A Theory and Analysis
      • Comprehensive Acquisition Modelling Exercise
      • LBO On-Line Course
      • Pro-Forma Balance Sheet Exercise
      • Modelling Tax Issues in M&A
      • Complex Issues in Acquisition Analysis
    • Retrieve Data for Historic Analysis (SEC Method)
      • Acquiring Data for Corporate Model
      • Union Function (UDF)
        • Union Function 1
    • Problems with Models and Valuation
      • Problem 1 – Boring vs Start-up and New Economy
      • Problem 2 – ROIC Measurement and Interpretation
        • Reconciliation of IRR on Investments with Corporate ROI
        • Valuation and Modelling of Financial Institutions and Insurance
        • ROIC Issues and Measurement from Asset Impairment, Service Companies and Dispositions
    • Depreciation – Stable, Existing, Matricies
      • Remaining Depreciation on Existing Assets
      • Stable Depreciation Ratios from Growth and Life
      • Economic Depreciation and Reconciling IRR with ROI
    • Problem 4 – Application of Multiples
      • Understanding P/E vs EV/EBITDA Multiples
      • Using the Value Driver Formula to Access Value
    • Problem 5 – Normalised Terminal Cash Flow
      • Stable Terminal Cash Flow in DCF — Working Capital, Taxes and ROIC
      • Normalised Cash Flow in DCF Growth
      • Bridge from Enterprise Value to Equity Value
      • Partial Year Discounting and Timing in DCF Analysis
    • Problem 6 – Value Drivers and Terminal Value
      • Terminal Value, Fade Period and Multiples
      • Bias in McKinsey Value Driver Formula – Change in Growth
      • Biases in McKinsey Formula Part 2 – Inflation Distortions
      • Use of Proofs in Corporate Valuation Analysis
    • Circular References in Corporate Models
  • Databases
    • Acquiring Data with Python and VBA for Database
    • Comprehensive Financial Analysis
      • Guide for Implementing the New Financial Database
      • Database for Historical Financial Statement
      • Adding Ratios to Financial Analysis Page
      • Search Results
      • Valuation Ratios and Projected Earnings
      • Example with Saudi Stocks
    • Stock Price Database
    • Commodity Price Database Including Futures Download
    • Interest Rate and Credit Spread Analysis from FRED
    • Country Economic Database from FRED
    • Database of Solar Costs
    • Other Database and Retrieval
      • Using Current Currency Database For Invoices etc.
      • Purchasing Power Parity Database and Exchange Rates
    • Mechanics of Creating Databases that Retrieve Data
      • A-Z Course on Reading and Summarising Data
      • On-Line Course for Creating Database from FRED
      • Technical Details for Reading Stock Prices into a Database
      • On-Line Course for Using Webrequest Method
      • Advanced Issues in Creating Economic Databases
      • Finding Data with Range Names in Same Path
    • Statistical Analysis in Finance
      • Excel Forecasting and Exponential Smoothing
      • Autocorrelation in Excel
    • Budgeting Analysis and Pivot Tables
  • Risk Measurement
    • Country Risk Premia (Damodaran)
      • Country Risk Analysis
      • Nestle Country by Country Cost of Capital
      • Soveriegn Debt and Local Debt
      • Implied Default Probability and Actual Probability
    • Equity Cost of Capital
      • General Cost of Capital Principles
      • Introduction to CAPM Problems
      • CAPM Problems – Rf
      • Beta Analysis in CAPM
      • EMRP Issues in CAPM
    • Implied Cost of Capital from Cash Flow Analysis
      • Price to Book Ratio to Derive Cost of Equity
      • Deriving from Price to Earnings
      • Other Sources for Cost of Capital
    • Mean Reversion of Stock Returns
    • Weighted Average Cost of Capital
      • Debt Beta from Credit Spreads Instead of Assuming Zero Debt Beta
      • Proof of Valuation Using Ku or WACC without Interest Tax Shield
      • Resolution of Tax Shield on Interest Expense in WACC
      • WACC Adjustment to Correct Valuation of Tax Shields
    • Credit Spread and Credit Analysis
      • Credit Analysis and Financial Modelling
      • Monte Carlo and Credit Analysis
      • Credit Analysis and Corporate Models
      • Implied Probablity of Default from Credit Spreads
      • Merton Model and Credit Analysis in Project vs Corporate Finance
      • Return on Risk Adjusted Capital for Banks (RORAC)
      • High Credit Spreads and Stealing from Developing Countries
    • Monte Carlo Simulation
      • Adding Monte Carlo Simulation to Models
      • Time Series Distributions and Volatilty
      • Mean Reversion and Time Series Equations
      • Monte Carlo Simulation with Alternative Distributions
      • Correlation in Monte Carlo and Cholesky Function
      • Replication of Black Scholes with Monte Carlo Simulation
      • Outage Analysis and Monte Carlo Simulation
    • Cases, Book etc.
      • Testimony on Energy and Finance Issues
      • Case Studies of Failed Project and Corporate Finance Investments
      • Dabhol – IPP Analysis and Project Finance
      • Corporate Finance Case Study – First Solar in 2010
      • Project Finance Model Case Study of Solar
      • Housing Values, Loans and Structured Finance in U.S. Housing Crisis
      • Petrozuata – Oil Project Finance
      • New Book
      • Slides Used in Project Finance and Corporate Finance Analysis
    • Swaps, Options and Futures
    • Expert Testimony
      • Cost of Capital Testimony
      • Testimony on Cost of Service and Rate Design
      • Generation Companies
      • Forecasting and Statistical Analysis
      • Testimony on Productivity
      • Testimony on Project Finance
  • Energy Analysis
    • Renewable Resource Analysis (Solar, Wind, Hydro)
      • Solar Financial Resource Analysis and LCOE
      • Solar Uncertainty Analysis (P90, P95 etc.)
      • Wind Financial Resource Analysis with Power Curves
      • Wind P99, P90, P50 (1-year, 10-year) and Debt Sizing
      • Wind Power and Merchant Prices
      • Hydro Resource Analysis and Power Equation from Gravity
      • Storage Hydro Peak Shaving
      • Analysis of Actual Variation in Hydro, Wind and Solar Production
      • Biomass and Biogas Analysis
    • Worldwide Merchant Electricity Prices
      • Nord Pool Merchant Electricity Prices
      • Philippines Merchant Electricity Prices: WESM
      • Turkey Merchant Prices
      • UK Merchant Prices
      • German Merchant Electricity Prices
      • U.S. Merchant Electricity Prices
      • Electricity Merchant Prices from ISO’s
      • Australia Merchant Electricity Prices
      • Korea Merchant Electricity Prices
      • Merchant Capacity Prices
    • Levelised Cost of Energy and Carrying Charges
      • Introduction: Four Methods and PMT
      • Lazard LCOE Reconciliation
      • LCOE and Value Drivers
      • Real Levelised Cost and Inflaton
      • Levelised Cost and Degradation
      • Levelised Cost and Taxes
      • Levelised Cost and Capital Replacements
      • Levelised Cost and Construction Timing
      • Levelised Cost and Debt Financing
      • LCOE Database
    • Battery and Storage Analysis
      • Introduction to Battery Analysis (kWh versus kW)
      • Battery as Merchant Peaker
      • Retail Rate Analysis of Batteries and Solar
      • Battery Analysis and Carrying Charges
      • Battery Characteristics
      • Storage from Batteries and Ancillary Services
    • Marginal Cost of Electricity and Evaluation of Strategy
      • Short-term Marginal Cost Presentation and Analysis
      • Long-term Marginal Cost and Load Duration Curve
      • Demand Analysis and Hourly Simulation
      • Conversions and Heat Rates
      • Outage Analysis and Monte Carlo Simulation
      • Market Price C++ Model
    • Analysis of Upstream Oil and Gas
      • Production Sharing Agreements
      • Reserve Based Loans
    • Hydrogen Analysis
      • Overview of Hydrogen
      • Storage, Compression, Dispensing and Distribution Cost
      • Vehicle Analysis with Hydrogen versus Other Energy
      • Hydrogen in the Context of Electricity System
    • Mini-Grid
      • Mini-Grid A-Z Model
      • Microgrid Anaysis with Battery – Version 1.0
      • Microgrid Analysis with Battery – Version 2.0
      • Solar Roof-top On-Line Course
      • Battery and Solar Home Systems versus Kerosene
      • Microgrid Demand and Supply
      • Mini Grid and Solar Rooftop
    • Solar, Battery, Hydrogen Course
  • Excel and VBA
    • Heavy Financial Models
    • Read PDF to Excel
      • Using Read PDF
      • Union UDF & Master List
      • VBA Explanation
      • European Numbers
      • A-Z Case 1
      • A-Z Case 2
    • Generic Macros File (Colouring and Copy to Right)
      • Coloring and Formatting (CNTL,ALT,C)
      • Copy to the Right (SHIFT,CNTL,R)
      • Finding No Dependent and Transfers
      • Additional Short-Cuts
      • Re-setting your Model
      • Sheet Name Remove
      • External Link Find
      • Delete Blank Row
      • VBA Explanations
    • Formula Evaluation with ALT, u
    • UDF Functions for Financial Models
      • Payback UDF
      • Sum #NA etc.
      • Maxif and Minif
      • XMIRR UDF
      • Volatility UDF
      • Depreciation Vintage UDF Function
      • Find Month
      • End of Quarter UDF
      • Dynamic Goal Seek
      • Repayment Function..Varying Rates
      • Match with Partial Titles
      • Resolving Millions, Billions in MarketWatch
    • Interpolate-Lookup Function
    • Spinner Boxes, Dropdown Boxes and Other Forms
    • Useful Short-Cuts, Creating Your Own Short-Cuts, Macros
    • Table of Contents Marco and Hyper Link Macros
    • Goal Seek Macro – Your First
    • Adding UserForms
    • Finding Circular References
    • CNTL TAB Fix
  • Scenarios & Graphs
    • Data Tables
      • Basic Data Tables
      • Better Data Tables with VBA
      • Data Tables and Goal Seek
    • Scenarios
      • Index/Data Table Scenarios
      • Scenarios and Spinners
      • Using Scenario Reporter
    • Tornado and Spider Diagrams
      • Tornado Fundamentals
      • Advanced Tornadoes
      • Spider Diagrams
    • Dynamic Graphs
      • Index and Spinner Blank Skip
      • #NA Trick and Flexible x-Scale
      • Offset and Dynamic Ranges
    • List Boxes, Check Boxes, #NA Fix
      • List Boxes and Multiple Series
      • Fixing #N/A Multiple Series
      • Multiple Check Boxes
    • Waterfall Chart Templates
    • Scatter Plots and Bubble Diagrams
    • Football Field Diagrams
    • Graphing Step Changes
  • Course
    • Project Finance Analysis and Theory
    • Exercises for Renewable Energy Course
    • Corporate Modelling and Valuation
    • Exercises for Project Finance Modelling Class
    • Exercises for Modelling Tax Equity
    • Exercises for Electricity Analysis and PPAs
    • Modelling for Adaption and Mitigation of Climate Change
    • Comprehensive Battery LCOE and LCOS (India)
  • Hydrogen Project Finance Model

Mini Grid and Solar Rooftop

The sub-menus to this selection review various different ways to construct a mini-grid model. The analysis involves dispatch of batteries and computation of solar plus battery with different strategies relative to diesel. The file that you can upload inlcudes presentation of the mini-grid and computation of the price of different alternatives.

Excel File with Example of Mini-Grid with Presentation of Dispatch and Use of ROIC with Terminal Value

Theme: Scaffold by Danny Cooper.