Description
Introduction
Climate recovery has taken centre stage, together with economic recovery from the COVID-19 pandemics effects on the World’s economy, in political debate. Renewable energy and energy efficiency investments are the main pillars of political efforts to reduce pollution caused by the burning of fossil fuels as an energy transport medium. Politicians target zero emission of CO2 within the next three decades. Ever increasing public support for climate recovery is becoming evident. Thus today the financial community, investors and bankers, need to thoroughly understand the problematic of RE and EE financing if these climate recovery goals are to be achieved. Additionally bankers need to proactively respond to new ESG regulatory requirements that have been made in response to political concerns about climate recovery.
Objectives
The objective of this course is to provide a foundation in the principles of financing Renewable Energy and Energy Efficiency projects.
Programme
1) Introduction and overview
- Does official support exist for energy sales or energy savings, which can be used to support the bankability of the project?
- Funding of RE and EE projects using corporate finance and project finance methods.
- The importance of originating bankable projects for bankers and profitable projects for investors.
- An overview of different types of renewable energy and energy efficiency projects.Which types of RE projects are most popular/applicable in the region?
2) Project Cycle Risks + group case studies
- Phases, Completion, Formal Permission for IPP scale Renewable Energy projects.
3) Investor and Banker Interests and Financial Key Performance Indicators
- Project’s investor- Investment return – Internal Rate of Return, Net Present Value and Simple Payback Time.
- Project’s Banker– Cash Available for Debt Coverage, Debt Service Cover Ratio, and Debt Service Reserve Accounts. Investor satisfaction.
4) Free Cash flow and Project Cash flow Models + case studies (when applicable: Bio Gas, Small Hydro-Power, Solar Power, Wind Power, industrial and agricultural energy efficiency)
- Cash flow analysis
5) Preparation of bankers for the new Environment, Social and Regulatory (ESG) operational and reporting regulations to be adhered to by banks.
Overview and background of ESG
What are the new ESG regulations and who would be responsible for implementing and monitoring them?
What business areas will be affected in the bank?
Consequences and timelines of the new regulations.
Consequences and timelines of the new regulations.
What business areas will be affected in the bank?
What are the new ESG regulations and who would be responsible for implementing and monitoring them?
Overview and background of ESG
6) Procurement + case studies
- Purchase and supply procedures
7) Contractual Issues and Risk Coverage
- Engineering Procurement and Construction contracts
- If available Power Purchase Agreements
8) Financial Instruments for Funding Projects
- Structuring EE and RE project financing
- Local capital market funding availability
- Advantages of IFI financing
Target Audience
Middle and senior management banking professionals, investors and government professionals (Environment and Energy Ministries).
Remark
When delivered online the course is made of
- 6 sessions of 4 hours
- a 30 minute one-to-one coaching session for each participant.
When delivered in face to face the course is delivered in 4 full days of training
Modalities
Course Material
Please note that for environmental reasons no paper version of the training material will be provided for your training. The course material can be downloaded free of charge via your portal before the start of the course (download the Client Portal User’s Guide here ). You will be able to view it on the screen of your mobile device or print it if necessary. If your registration has been made by a training manager of your company please contact him/her so that he/she can give you access to it or send it to you.
Exam
No exam is available for this course.
Contact
For further questions please contact our partner in your country