Financial Model Template for a Dam (Hydropower) - Renewable Energy Infrastructure

I am enthusiastic about embarking on the development of my fourth financial model within the renewable energy sector, specifically focusing on hydropower. This business model leverages the natural flow of water and gravitational forces to generate electrical energy, offering a sustainable and long-term energy solution.

Hydropower projects are capital-intensive, requiring significant initial investment. However, they promise substantial returns as they provide communities with a reliable source of clean energy for up to fifty years. My experience in financial modeling and planning for infrastructure projects ensures that this model will be meticulously designed to capture the complexities and potential of such a transformative endeavor.

$75.00 USD

After purchase, the template will be immediately available to download. It is also included in the industry-specific bundle, the renewable energy business case bundle, and The Super Smart Bundle.

hydropower

Template Features:

  • Model runs for up to 20 years.
  • Includes option for terminal value to properly conduct a DCF Analysis.
  • Monthly and Annual 3-statement model integration.
  • IRR, DCF Analysis, and joint venture cash flow waterfall capable (IRR hurdles).
  • Configure dynamic revenue assumptions based on flow rate, dam size / height (net head), kWh pricing expectations, uptime hours, and efficiency.
  • All calculations are denominated in meters.
  • Assumptions can be adjusted in each of the 20 years to see various scenarios, such as reduced flow rate, declining efficiency, or expansion.
Some of the new things I've done in this Excel spreadsheet include a simplified way to calculate depreciation, fixed asset value, and disposition at exit. Now, the user can simply assume at exit the net tax effect is based on the terminal value less net book value of fixed assets. Net book value is just the original cost basis less accumulated depreciation.

I've also built the bottom-up assumptions so that the user is using month #'s to define all timing assumptions. You can then layer any dates you want starting at the start month without worry of compromising the financial statement views.

One of the templates features I'm most proud of is the construction loan option. This has a few features:
  • Define the interest only (i/o) period. During this time, a defined percentage of all construction costs will drive loan draws per month.
  • Select if the interest during this period will be accrued and compounded to the balance or paid each month.
  • Define the terms for the conversion to a regular p+i amortization after the i/o period.
  • Upon exit, if the user selects to display terminal value, then the loan balance will be paid off upon the defined exit month.
There are plenty of slots to account for fixed and variable expenses over time, staffing, and particularly the cost per kWh transmitted (up to 3 different costs for that). I've also added an additional CAPEX schedule to account for other one-time costs that are depreciable but don't directly fit on the construction cost schedule for whatever reason. You can use that for anything that is not subject to financing but is depreciated over some useful life.

There are lots of visualizations for high level financial overviews as well as more granular KPIs such as uptime, efficiency over time, MWh produced, and more.

If you need customizations to this or any other financial model template, you can hire me here.

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