This course has now expired please email us to find out when the course will next be running.
Renewable Energy Project Finance - Munich
A three-day renewable energy project finance training course, where participants will learn about: Structuring Renewable Energy Projects; Risk Assessment and Allocation in Renewable Transactions; How Tax Credits and Other Incentives Can Impact These Projects; Carbon-Credits and Trading Markets; Cashflow Analysis and Structuring Alternatives; Debt and Equity Alternatives and Incentives; Commodity Price Hedging for Wind and Other Deals; Managing International Risks.
A three-day renewable energy project finance training course, where participants will learn about:
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Structuring Renewable Energy Projects:
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Wind
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Biomass
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Small Hydro
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Landfill Gas
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Waste to Energy, Solar
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Risk Assessment and Allocation in Renewable Transactions
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What Countries?
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Incentives
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Feed-in tariffs
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Renewable Portfolio Standards
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Subsidies and Grants
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Tax Credits
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Depreciation Schedules and others
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Carbon-Credits and Trading Markets
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Cashflow Analysis and Structuring Alternatives
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Debt and Equity Alternatives and Incentives
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Commodity Price Hedging for Wind and Other Deals
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Managing International Risks
Case Studies: Wind Power, Bio-Mass and Solar Projects
COURSE BACKGROUNDFor the past decade the power market has been subject to waves of upset globally. Volatile prices, doubts over the sanctity of long term contracts, liberalization policies and regulatory uncertainty, have resulted in deep apprehensions on the part of both investor and creditors. However, power plants generating energy from renewable resources such as wind, bio-mass, hydro- and solar-technologies have found favor with lenders and investors even in difficult markets. The renewable sector in Europe has long benefited from environmental concern over fossil-fuel fired plants, and has been further encouraged by European-wide and single-nation commitments to achieving 22% of electrical output from renewable sources by 2010, in order to meet Kyoto Treaty objectives. In the United States renewable numerous transactions are closing as well due to environmental concerns, industry restructuring, and Investor-owned utility commitments to adding renewables to their resource mix. Today nearly 10% of U.S. energy production comes from renewable sources and this market, along with China and India are among the fastest growing.
COURSE CONTENTThis program will discuss approaches to financing wind, biomass /biofuel, solar and other renewable projects in many parts of the world, focusing on how these transactions differ from more conventional thermal-based deals. Peculiarities such as intermittency, location constraints, transmission, and interconnection will be described, as well as renewable power purchase agreements, and other project contracts. Examples of deals that have been structured to take maximum advantage of the growing variety of global incentives and tax-breaks will be used to illustrate principles and insure understanding. Attention will also be placed on many of the new and emerging financing vehicles.
DAY ONE Themes: Renewable Financing, Energy Initiatives and Project Economics; Wind Projects
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AM OVERVIEW OF RENEWABLE ENERGY PROJECT FINANCING
- Global Growth of the Market
- Various Types of Renewable Energy Projects and Comparative Costs
- Wind Powered Electricity Plants
- Small-Scale Hydro Plants
- Landfill Gas Projects
- Bio-Mass and Bio-Fuels
- Geothermal Energy
- Solar Power
- Snapshot of Global Incentive Programs Designed to Encourage Renewable Energy Usage and Investment (Europe, U.S., India, China)
- Feed-in Tariffs
- Renewable Portfolio Standards and
- Renewable Energy Credits
- Depreciation, Allowances, etc.
- Financing Structures and Players
RISK IDENTIFICATION AND ALLOCATION IN A WIND PROJECT FINANCING: Different Approaches/Differing Risks from Conventional Power Project Finance
- Construction and Warranty Issues
- Technology Advances
- Operational Issues
- Transmission, Interconnection and Tariffing
- PPA Considerations: Availability, Energy and Environmental Credits
PM WORKSHOP: CASH FLOW MODELING FOR VARYING CONSTITUENCIES
- Building a Model: Forecasting Techniques and Limitations
- Cashflow Sensitivity Analysis and Creditor Considerations
- Sponsor Return Calculations
- Tax-Equity Investors and Considerations
CASE STUDY: Financing a Wind Power Plant
Participants break into small groups to evaluate this security package for a wind power plant. They will look at financing choices, structure, project cash flows, and quantify their risk assessments.
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Themes: Legal Issues; Sources of Finance; Rating Agencies and Wraps; Hedging Schemes; Bio-Mass and Bio-Fuel Projects |
AM CASE DISCUSSION
FURTHER LEGAL ISSUES AND CONTRACTUAL CONSIDERATIONS
- Key Contractual Agreements and Structuring Considerations
- Power Purchase Agreements (Pricing Structures, Milestones and Penalties)
- Equipment Supply and Time Lines
- (Credit Support, Late Delivery, Liquidated Damages, Risk of Loss of
- Tax Benefits)
- Balance of Plant Agreements
- Land Lease
- Shareholder Structures
BANK DEBT AND CAPITAL MARKETS AS FUNDING ALTERNATIVES
- Bank Debts and Syndications
- Domestic and International Capital Markets Access:
- Eurobonds, Private Placements
- Market Convergence
- Rating Agencies, Basel 2, and Credit Wraps
INTEREST RATE, CURRENCY, FUEL AND ELECTRICTY PRICE HEDGING
- Debt Sizing and the Use of Interest Rate and Currency Derivatives
- Commodity Pricing and Hedging Mechanisms
- Gas and Heat-Rate Hedges
- Using these Derivates in Wind and Other Renewable Energy Projects
PM BIOMASS AND BIO-FUEL PROJECTS
- Wood/Power Generation
- Bio-Mass and Bio-Fuels: What are the Prospects for These Technologies?
- Emissions, Waste Disposal, and other Regulatory Issues
CASE STUDY: Wood-fired bio-mass project
CASE STUDY: Bio-mass Fueled Ethanol Production
Participants will break into small groups to evaluate this bio-mass fuel project to produce ethanol. Including discussion of proven and unproven technology, emission controls, fuel transportation and handling. Also, availability of contracts for risk allocation, as well as debt and equity structuring requirements.
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DAY THREE
Themes: Carbon Credits; International Risks; Solar Projects and Other Technologies |
AM CASE STUDYCARBON CREDIT TRADING AND RENEWABLE PROJECTS
- Clean Development Mechanism (CDM)
- Certified Emissions Reductions (CER): Issuance, Monitoring and Compliance
- Joint Implementation Program (JI)
- EU Emission Trading Scheme (ETS)
- US Renewable Energy Credits and Renewable Portfolio Standard
- Project Cycles and Credit Usage
Case Discussion: Small Hydro in Mexico and Forward Purchase of Carbon CreditsDEVELOPING PROJECTS IN INTERNATIONAL MARKETS:
- Sources of Credit and Risk Support for International Renewable Projects
- Official Political Risk Enhancers (ECAs, Development Banks) and Others
- Accessing Local Capital Markets in Developing Countries
SOLAR POWER AND OTHER TECHNOLOGIES
- Solar Photovoltaic Systems and Solar Thermal
- Issues of Scale, Cost and Application
- Constraint on Supplies of Polysilicon
- Governments Incentive Programs
- Financing Challenges and PPA Solutions
- Roof and Ground Leasing Issues; Other Site Requirements
- Technology Warranties
- Geothermal Plants
- Other Technologies (Wave Power)
- Case Discussion: Land-fill Gas (LFG) to Energy
PM CASE STUDY; Financing a Solar ParkParticipants will evaluate the security package for a Photovoltaic (PV) Solar Park.
WRAP-UP
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
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6-8 Sep 2010 (Hamburg, Germany)
The course will discuss approaches to financing wind, biomass/biofuel, solar and other renewable
projects in many parts of the world, focusing on how these transactions differ from more conventional
thermal-based deals. And other ...
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This course has now expired please email us to find out when the course will next be running.