Edward Bodmer – Project and Corporate Finance

Resolving BS in Finance

  • Home
  • Project Finance
    • Featured Project Finance and Real Estate Models
      • 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
      • Multiple SPV’s for Roof-top Solar and Real Estate
      • 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 Project Finance (Mining, Oil, Agriculture)
        • Mining Models
        • Downstream Oil and LNG
        • Agriculture Project Finance
        • Upstream Oil Project Finance Models
      • Project Finance Models for PPP’s (Perpetual Pending Projects)
        • Value for Money Analysis
        • Other PPP Examples (Parking and Street Lights)
        • University PPP Examples
      • Other Project Finance (Paper, Manufacturing, Storage, Shipping)
        • Manufacturing Project Finance
      • Project Finance Credit Analysis Examples
    • Building a Finance Model
      • Revised A-Z Project Finance Modelling
        • Original A-Z (More Basic) Project Finance Modelling
        • Construction Analysis and EPC
        • Operating Tax, Depreciation and Currency Adjustments
        • Expiration of NOL in Project Finance
        • 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
        • Working Capital in Project Finance
      • Project Finance Model Funding and Sculpting Exercise
      • Sculpting with Multiple Debt Issues – Size from DSCR
        • Setting-up Debt Page with Multiple Issues Using SUMIF
        • One Sculpted Debt Issue and Other Non-Sculpted Issues with Fixed Repayment
        • Multiple Debt Issues All Sculpted — Part 1
        • Multiple Debt Issues All Sculpted — Part 2
        • Separation into Balloon Payment and Sculpting
      • Sculpting with Debt from Debt to Capital, Changing DSCR
        • Sculpting with Fixed Debt and Changing DSCR — Simple Case
        • Sculpting with Fixed Debt – Goal Seek and Data Table Method
        • Sculpting with Fixed Debt and Changing DSCR – User Defined Function
        • Debt Sculpting with Multiple Debt Issues, Fixed Debt and Changing DSCR to Meet Average Debt Life
      • Sculpting in Project Finance — Part 1
        • Sculpting Fundamentals and Non-Constant Interest Rates
        • Repayments with Debt to Capital Constraint and Constant DSCR
        • Incorporating Taxes in Debt Sculpting and Simple UDF Functions
      • Sculpting in Project Finance — Part 2
        • Sculpting and Debt Fees (Including Fees for DSRA L/C)
        • Interest Income on the DSRA and Sculpting
        • Including Releases or Deposits to DSRA in DSCR and Sculpting
      • Actuals, Model Review, Monthly Modelling, Currency Adjustment
        • Incorporating Actuals in Project Finance
        • Reviewing Project Finance Models and Laying on a Bed of Nails
        • Currency Adjustments, Taxes and Debt
        • Monthly Model with Semi-Annual Debt Service
      • Developer Cost and Development Fee Theory and Analysis
        • Development Cost Analysis
      • Learning Crimes from Horrible Models
    • Structuring Debt in Project Finance
      • Project Finance Theory
      • Introduction to Structuring Issues; Screw the Blah, Blah, Blah
      • Debt Sizing
        • 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
        • Development Fees, Profit Sharing and Theory
      • 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 and BS of Damoradon Country Premiums
        • ECA Financing, Premium and Debt IRR
        • Economics of Floating and Fixed Interest Rates in Project Finance
        • Interest Rates in Different Currencies and Inflation Rates
      • 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
      • Re-Financing Analysis
    • Circular Reference and Pain Points
      • Solving the Pain Points in Project Finance Modelling
      • Template Circular Reference Solution
        • Technical Details of UDF/Parallel Model Concept
        • Applying Parallel Model with UDF to Your Models – Simple Cases
        • Applying the Parallel Concept to Your Model — Multiple Debt Issues
        • Applying the Parallel Concept to Your Model — Complex Project Finance Issues
      • Circular Reference with UDF – Basic On-Line Course
        • Implementing the UDF/Parallel Model Pre-COD
        • Circular Reference – DSRA
        • Circular References from DSRA and Cash Sweep
      • Circular Reference On-Line Course – Advanced UDF’s
        • Overview of Circular References Hitting the Wall in Project Finance
        • Circular Template Technical Details Part 1: Reading Data into UDF
    • Tax Equity Partnerships and Leases
      • A-Z Tax Equity Modeling
        • Tax Equity Model with Fixed Flip Date (Generally for Solar Projects)
        • Yield Based Flip and Partnership Allocation ( Wind Projects)
        • Detailed Model with Periodic Cash Flows
        • Wind Projects and PAYGO
      • Capital Accounts, DRO’s, Leases
        • Inside Capital Account (704(b))
        • Outside Basis (Tax Basis)
        • Non-Recourse Debt and Minimum Gain
        • Inverted Lease
    • Equity Distribution, Developer Incentive, IRR Issues
      • Performance Incentives for Developers
      • IRR is not B.S
        • McKinsey Critique of IRR is B.S.
        • Overview of 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
    • 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
    • Torture Chamber Financial Modelling Interviews
    • Heavy Financial Models
  • Corporate Finance
    • Featured Corporate Finance Models
      • M&A and LBO Concepts and Featured Models
      • Corporate Models of Crisis, Amazon and A-Z Modelling
      • Financial Model Beginning with ROIC and Growth to Derive Value
      • Food and Beverage Examples with Advanced Valuation and Historic Data
      • Air Freight and Corporation as Portfolio of Investments
      • Financial Institution Analysis – Banks and Insurance
      • First Solar Corporate Model and Danger of High ROIC
      • Other Corporate Finance Models (New Store Analysis and Construction)
      • Other Corporate Models
    • Building a Corporate Model
      • Corporate Finance Theory, Magic Potion and McKinsey B.S.
      • A-Z Step by Step Corporate Model with Theory and Mechanics
        • Overview of Corporate Model Theory and Practice
        • Acquiring Data for Corporate Model
        • 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
      • Corporate Model Basic A-Z On-Line Course
      • Learning from Horrible Corporate Models
      • Tricky Problem of Computing NOL with Expiration After Given Period
      • Tabulating Annual Sums in Monthly or Quarterly Models
    • Problems with Models and Valuation
    • Problem 1 – Boring vs Start-up and New Economy
      • Retrieve Data for Historic Analysis (SEC Method)
    • Problem 2 – ROIC Measurement and Interpretation
      • Reconciliation of IRR on Single Investments with ROI for the Corporation
      • Valuation and Modelling of Financial Institutions and Insurance
      • ROIC Issues and Measurement from Asset Impairment, Service Companies and Dispositions
    • Problem 3 – Depreciation and Changing Growth
      • Depreciation with Different Asset Vintages and Rates Using UDF
      • Depreciation in Corporate Models with Changing Growth
      • 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 and Growth
      • Stable Terminal Cash Flow in DCF — Working Capital, Taxes and ROIC
      • Normalised Cash Flow in DCF Calculations – Stable Level of Capital Expenditures Consisitent with Terminal 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
      • Biases in McKinsey Value Driver Formula Part 1 – Changes in Growth Rate
      • Biases in McKinsey Formula Part 2 – Inflation Distortions
      • Use of Proofs in Corporate Valuation Analysis
    • M&A On-Line Courses and Exercises
      • M&A Theory and Analysis
      • Comprehensive Acquisition Modelling Exercise
      • M&A Modelling Fundamentals On-Line Course
      • LBO On-Line Course
      • Pro-Forma Balance Sheet Exercise
      • Modelling Tax Issues in M&A
      • Complex Issues in Acquisition Analysis
    • Circular References in Corporate Models
    • Hellish Corporate Modelling Interviews
  • Databases
    • Databases from Internet with Automatic Updates
      • Comprehensive Stock Price, Economic Variables, Commodity Prices and Exchange Rate Analysis
      • Comprehensive Financial Database if You Cannot Afford Bloomberg
      • Commodity Price Database Including Futures Download
      • Country Economic Database from FRED
      • Interest Rate and Credit Spread Analysis from FRED
      • Using Current Currency Database For Invoices etc.
      • Purchasing Power Parity Database and Exchange Rates
      • Database of Solar Costs
    • 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
    • Database Analysis VBA
  • Cost of Capital
    • Country Risk Premia (Damodaran)
    • Equity Cost of Capital
      • Introduction to Cost of Capital Measurement and CAPM Problems
      • Using a Regression of the Price to Book Ratio and ROE to Derive Cost of Equity
      • Using the Price to Earnings Ratio to Derive the Cost of Equity
    • Weighted Average Cost of Capital
      • Debt Beta from Credit Spreads Rather than 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
      • Ease of Adding Monte Carlo Simulation to Financial Models
      • Monte Carlo Simulation with Alternative Distributions
      • Time Series Equations for Monte Carlo Simulation
      • Correlation Between Variables in Monte Carlo Simulation
      • Replication of Black Scholes with Monte Carlo Simulation
      • Outage Analysis and Monte Carlo Simulation
    • 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
      • Examples of Resourse Analysis
    • Worldwide Merchant Electricity Prices
      • Philippines Merchant Electricity Prices: WESM
      • Nordpool Merchant Electricity Prices
      • 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
      • Real LCOE
      • Three LCOE Methods and Seven Value Drivers
      • Levelized Cost of Hydrogen and Biomass
      • Carrying Charge Analysis Part 1 — No Debt, No Taxes, No Inflation
        • Carrying Charges Part 1 – Fundamentals
      • LCOE Database
      • Carrying Charge 2 — Inflation in Carrying Charges in Renewable Energy Prices
      • Carrying Charges — Inclusion of Taxes in Carrying Charge Rates
      • Carrying Charges — Effect of Debt in Analysis
    • Battery and Storage Analysis
      • Introduction to Battery Analysis (kWh versus kW)
      • Battery and Renewable in Wholesale Market
      • Microgrid Analysis with Battery – Version 2.0
      • Retail Rate Analysis of Batteries and Solar
      • Battery Analysis and Carrying Charges
      • Battery Analysis and Merchant Prices
      • Microgrid Anaysis with Battery – Version 1.0
      • 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
    • Mini Grid and Solar Rooftop
      • Microgrid Analysis with Demand Analysis, Solar, Battery, Mini hydro, and Diesel
      • Battery and Solar Home Systems versus Kerosene
      • Solar Roof-top On-Line Course
    • Analysis of Upstream Oil and Gas
      • Production Sharing Agreements
      • Reserve Based Loans
  • Excel and VBA
    • 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)
      • Formatting Sheets (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
    • 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
    • Interpolate-Lookup Function
    • Spinner Boxes, Dropdown Boxes and Other Forms
    • Useful Short-Cuts and Creating Your Own Short-cuts and Other
    • Table of Contents Marco and Hyper Link Macros
    • Goal Seek Macro – Your First
    • Finding Circular References
  • 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
    • Search Results
  • 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

Renewable Resource Analysis (Solar, Wind, Hydro)

The pages in this menu address various resource, economic and financial issues associated with renewable energy. The other pages describe details of resource estimation, probability of resource analysis, financing analysis.

Excel File with with Course Review on Renewable Energy Analysis includng Financing and Resource Analysis

The file and the video below review a course on renewable energy.

Theme: Scaffold by Danny Cooper.