Financial Modeling for Power Project Finance
Unlock Advanced Expertise: Navigate Investment Decisions with Confidence
Course Overview
Dive into a unique learning experience designed for professionals in the African infrastructure sector, with a primary focus on power project finance. This course will teach you to predict and balance financial variables to produce detailed and insightful financial models, conduct sensitivity analyses, and how to leverage financial models to inform investment decision-making. Using this knowledge, you will be able to identify opportunities for growth for your organisation while mitigating risk.
What you will walk away with
- Deep insight into financial modelling, especially in the power sector.
- Skills in constructing a financial model for privately funded power projects in high-risk contexts.
- Skills in building a basic financial model for a project-financed asset.
- A thorough understanding of how the principles of project finance influence the financial structuring of projects.
- Knowledge in calculating the common operational metrics of a renewable energy project, including capacity and generation.
- Skills in conducting sensitivity analyses to model the impact of various inputs on power project economics and viability
Additional Course Information
MODULE BREAKDOWN
Curriculum Overview
Module 1
Building a basic financial model
Build a best-practice financial model from scratch for a renewable energy project finance deal. Participants will be taught how to apply core project finance concepts to a financial model using a case study of a renewable energy project. Concepts taught include benefits of leverage; debt amortisation profiles; determining borrowing capacity and debt sizing; modelling generation (incl. curtailment); capex and operating expenses; unlevered returns; construction and grant funding; depreciation; taxation; and model optimisation for both debt and equity investors.
Module 2
Running sensitivity analyses
Delegates will be taught best practice for building and running sensitivity analyses for key variables and inputs, mainly using a scenario manager and data tables. This includes stress-testing the model for debt sizing; sensitivity analyses to review the impact of changing variables on required prices/ concession payments; and determining the most sensitive variables. This is a key skillset for understanding and quantifying investment risk, and forms a core part of the week’s taught content.
Module 3
Understanding how the financial model informs investment decision-making (for private and public sector representatives)
Through applying the project finance concepts taught using the model, participants will be able to predict and analyse investment decisions. Having both public and private sector representatives in the classroom will allow for robust discussions, using the model outputs and variables
Minimum Requirements:
- NQF 4 (High school equivalent)
- English Proficiency
Who should apply:
- Public and private professional in the African Infrastructure sector
- Project finance practitioners
- Project developers
- Project finance professionals working in the government, banking, or investment sectors.
- Ideal candidates will have completed UCT GSB’s Finance, Contracts and Risk Mitigation for Private Power Investment in Africa.
Learn with the best
Our Internationally acclaimed researchers and teachers are all dedicated and gifted individuals who contribute directly to UCT GSB's reputation of excellence.
Director: Power Futures Lab
Dr Wikus Kruger is the Power Futures Lab Director, based at the University of Cape Town’s Graduate School of Business.
Head: Executive Education
Jodie Martin is the Executive Education Head of Department where he leads and supports our world-class Executive Education delivery team.
Lecturer
Haydn Palliser is a Lecturer at Yale and Columbia Universities, and a Principal at Pivotal180 - a firm focused on training and advisory in the energy, infrastructure, and project finance sectors.FAQ
15% for 3 - 6 applicants (bulk discount applied from third applicant)
10% for 7+ applicants (bulk discount applied to all applicants)
10% for alumni of UCT GSB academic and Executive Education courses
The UCT GSB's Breakwater Campus is situated in the heart of Cape Town's most popular tourist attraction, the Victoria and Alfred Waterfront. Centrally located and easily accessed, the UCT GSB is just 1.5km away from the central business district and 20 minutes from Cape Town International Airport.
As an added benefit to studying at the UCT GSB, you'll be situated in one of the most beautiful cities in the world.
Certificate of completion
Flights & accommodation costs are not included.
The course is a non-credit-bearing course delivered at the equivalent of an NQF 8 postgraduate level of study.
The course is accredited through UCT, which is a registered public higher education institution with the Council on Higher Education (CHE). Each programme is accredited through an internal UCT quality assurance process, as delegated by the CHE, ensuring the excellent quality of our offering.
In short, this course does not refer to NQF levels.
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