Financial Models to Protect Alternative Energy Investments
Do you know how many factors an investor worries about? Cost of the plant, feed-in-tariff, tipping fee? Yes. What else? Operating costs, terms of credit, debt/equity ratio? Right. But actually the standard set of parameters which has a vital influence on the project is over 50, and each has to be included into good financial model.
The common problem of many models is non-flexibility, when developer has to check every instance of modified parameter and even change formulae in Excel, which is most used instrument for such kind of calculations. Such approach leads to critical mistakes and hours of non-productive job.
Waste to Energy International (WTEI) has developed three very flexible financial models: for waste-to-energy plants, wind and solar power stations. Every model has a set of specific parameters; for waste-to-energy plants there are over 50 of them. Each parameter has to be entered only once, what allows to play what-if-scenarios instantly. Now variants with different debt/equity ratio, share structure, inflation index, etc. can be checked in a minutes.
Financial model analysis is offered by WTEI as integral part of feasibility study or as separate assessment ordered by client. More information can be found on the Financial Model page.