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Week 5 of eight in the Green Finance Professional Certificate, 108 contact hours for finance professionals, taught at the University of Twente and published by the Erasmus+ GREEN FINANCE project under CC BY 4.0. The project's second programme, the micro-credential, is five modules and 30 lessons worth 4 credits in the European Credit Transfer and Accumulation System (ECTS).

Week 5: Project Finance

Learning Goals

  1. Understand renewable energy project economics including LCOE trends
  2. Apply project finance modelling techniques (DSCR, IRR analysis)
  3. Evaluate green infrastructure investments through case studies

Topics Covered

  • Levelized Cost of Energy (LCOE)
  • Renewable capacity growth trends
  • Project finance structures
  • DSCR sensitivity analysis
  • Cash flow modelling
  • IRR sensitivity analysis

What is assessed

The midterm financial modelling project falls after this week and carries 20% of the mark. It asks for a project finance model of a renewable energy asset: a cash flow projection, a debt service coverage ratio through the loan tenor, and an internal rate of return with a sensitivity analysis over the drivers the week identifies. The model is the deliverable, and the marks follow the assumptions a participant states and defends.

A mark of 70% over the four assessed parts earns the certificate, 80% a merit and 90% a distinction. Attendance below 90% of contact hours ends certification whatever the marks.

Materials

(c) Joerg Osterrieder, University of Twente

The project's published teaching material is free to use under CC BY 4.0. Attribute it to the GREEN FINANCE consortium and name the grant, 101237817.

Co-funded by the European Union - Erasmus+ Programme

Erasmus+ Programme | Capacity Building in Higher Education
Project 101237817 - GREEN FINANCE
Material on this site is published under CC BY 4.0, attributed to the GREEN FINANCE consortium.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Education and Culture Executive Agency (EACEA). Neither the European Union nor EACEA can be held responsible for them.