Virtual Classroom

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Who should attend the course?

  • Individuals – looking to move into the real estate industry
  • New hires – who have missed a joining company in-house program
  • Teams – employed in real estate investment roles with non-finance backgrounds
  • Graduates - preparing to interview for a finance related role in the real estate industry
  • Students – at business schools looking for a career in real estate finance
  • Investment bankers (real estate industry teams)
  • Real estate analysts
  • Buy side (principal investors
  • Anyone interested in real estate investments

Course details

Course Objectives

  • Learn the success and failures of renewable energy policy worldwide
  • Understand different structures, contracts and best practice for different sectors of renewable energy finance and investment
  • Evaluate and risk classify renewable energy deals from a lender and equity perspective, with a specific focus on international renewable energy investment by SWFs and other major players
  • Be able to value a comprehensive range of renewable energy projects
  • Analyse financing structures and build renewable energy financial models
  • Employ the models in risk analysis for projects

Day 1: Renewables – the future of international energy

  • Climate change, energy contribution to carbon emissions and the evolution of renewable energy
    • Climate change and international Energy Policy from From Feed-in-Tariffs to energy auctions International differences in renewable energy and their causes
    • Renewable energy statistics and information sources (IEA, IRENA)
    • Renewable energy worldwide: the technology, regulation, competition, markets and risks
    • evelopment of battery technology
    • The Levelised Cost of Electricity (LCOE), duck curve and the economics of renewables
  • Financing renewable energy projects – supplying and escaping the grid
    • Differences between sectors: opportunities for investment and debt
    • Corporate vs project finance for renewable energy
    • Opportunities for multiple debt and equity layers in renewable transactions
    • Power Purchasing/offtake Agreements (PPAs) for renewables
    • Guarantees, technology and performance
    • Other contracts from a bank and investor perspective
    • Construction cost agreements (EPC contracts)
    • Operating and Maintenance (O&M) agreements
    • Term Sheets
    • Shareholder Agreements
  • Funding Renewable Energy in practice
  • Legal structures for renewable energy investment
    • Licences and land agreements
    • Project structure for renewable energy – why no capacity charges?
    • Project financing with low interest rates
    • Funding differences by sub-sector:
  • Lenders and Investors in the Renewable energy market
    • Review of international lending and investment in renewables
    • Private equity and other independent investment in renewables
    • Socially responsible investment (SRI) and renewable energy
    • Bond issuance and public sector involvement
    • Corporate, fund and public investment
  • Principles of energy valuation
    • Review of appropriate valuation methodologies
    • Approaches to valuation (RICS and others)
    • Distinguishing cost, risk and financial analytics for different types of renewable energy projects
    • Modelling and forecasting electricity output and energy prices for valuation purposes
    • Wind data and wind power curves
    • Applications to geothermal, thermal generators and other sectors
    • Analysing and modelling probabilities (P99, P90, P75 and P50)
    • Weather derivatives and other renewable hedging techniques
  • Accounting and finance issues
    • Revenue, operational expenditure & capital expenditure, and inflation, WACC, currency and growth rates and their impact on valuation of renewable projects and companies
    • Differences between sectors in valuation approaches
    • Project finance issues: tax, depreciation and accounting issues for project finance SPVs used for renewable energy
  • Alternative valuation techniques in practice
    • Dividend discount valuation methodologies and renewables
    • Ratio Analysis for renewables: the maturity of a market
    • Replacement and alternative cost valuation techniques
    • Valuation of renewable energy companies – empirical evidence

Day 2: Modeling

  • Review of relevant Excel for energy modelling
  • Model sensitivity and auditing
  • Definitions and analysis
  • Revenue and cost modelling
  • Cash adequacy, recourse, standby and liquidity
  • Financial coverage ratios and the bank perspective
  • SPVs and the accounting sheets
  • Equity valuation
  • Equity NPV/ IRR and project IRR
  • XNPV, XIRR, MIRR
  • Modelling Risk (sensitivities, scenarios and Monte Carlo
  • Integrating contract documents into the model
  • Analysing the inputs
  • Dealing with input priorities
  • Data plausibility
  • Cashflow Projections
  • Loan assessment
  • IRR NPV and other valuation analysis
  • Modelling the accounts
  • Use the model for risk analysis (sensitivity, scenario and Monte Carlo)

""The virtual classroom was engaging and it felt like a classroom training"" ~ HR, International Investment Bank

What is a Virtual Classroom

Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.

Prerequisite

We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.