FINANCIAL

MODELLING IN
THE POWER
SECTOR
A highly practical guide to the intricacies
and nuances of Excel modelling in
the power sector
London Dates:
3-5 September 2014 & 18-20 February 2015
COURSE LEADER:
Richard Capps, International financial
modelling expert
Course benefits:
G Learn how to avoid costly errors by ensuring your financial modelling is
100% robust
G Appreciate best practice in model design and implementation
G Identify the major modelling issues in financing and operating power plants
G Develop and implement various worksheets of the model
G Understand the application of best practice modelling techniques
throughout the different stages of the model
G Optimise the analysis of the power project used within the course by the
use of functions and features within both excel and VBA
It's one of the best courses I have ever attended. Richard was
excellent as a trainer - excellent course content and leadership skills.
Boris Rozental, Business Development Manager, Pipe Innovation Tech

www.iff-training.com
Tel: +44 (0)20 7017 7190 / Email: cs@iff-training.com
We can deliver this course in-house:
Your company, your content, your
location, your needs
Contact Jeff Hearn:
+44 (0)207 017 7190
jhearn@iirltd.co.uk
FINANCIAL MODELLING IN THE POWER SECTOR
The Importance of Modelling in the Power Sector Today
Transparency when it comes to financial analysis in todays market is more important than ever before, with an increasing demand for accuracy. The
implications of errors in models can be extremely costly and need to be avoided wherever possible, especially in the current challenging climate.
Power generation has for 3 decades been the largest sector for project financing. Where the financing is done with limited recourse to the company behind
the project the ability to support that financing is dependent solely on the cashflows generated by the individual project itself - it therefore becomes critical
that any modelling is done to an exemplary standard. In particular the model will need to robustly test for the volatility of the cashflows. Very often it is not
the base case that kills, but the occurrence of conditions other than the base case over the life of the project.
The modelling of the project is the key part of the 3-stage analytical process:
1. Identification of the circumstances in this particular project that could cause cashflow volatility - i.e. risk identification
2. Quantification of the cashflow impact in the event that those risks would occur
3. Structuring the transaction to safeguard it from the potential occurrence of those risks
In addition, the model may often be important for other purposes, for example to determine the optimal financing structure, or to determine the feasibility
through valuation of the project.
This course has been designed to enable you to understand the modelling process both theoretically and practically with particular emphasis on the
challenges and issues unique to the power sector. This will in turn give you the ability to identify the problem areas and avoid the common pitfalls inherent in
this type of modelling. This course will cover both the merchant power markets and the IPP markets. All power generation technologies will be touched
upon including the renewable energies and you will leave with a thorough understanding as to how the modelling techniques learned can be relevant to all
the different platforms.
www.iff-training.com
Tel: +44 (0)20 7017 7190 / Email: cs@iff-training.com
WHY CHOOSE IFF AS YOUR TRAINING PROVIDER?
Track Record we have over 20 years experience of providing training to the banking, finance and energy sectors.
Relevance training courses are designed for small delegate groups which ensures you maximise the time and contact with your course director
Innovation our courses are continually reviewed so you can be sure they are focusing on the most current issues.
Knowledge all of our trainers are highly experienced and are world leading subject matter experts in the field they teach so you can be confident you are
learning from the very best.
Small class sizes to aid knowledge acquisition and increase your personal interaction with the trainer
Value our philosophy has always been to provide a practical training experience with skills that can be used to gain a tangible return on your investment.
Accreditation we are accredited by the British Accreditation Council (BAC)
Many organisations have realised that IFF in-company courses offer
so much more than conventional courses. Heres why:
We focus on providing our clients with training solutions that are
specifically designed for them in order to help them address their key
business challenges
IFF programmes are designed by practitioners for practitioners. We
equip our clients with the practical skills and knowledge they need to
succeed
Our international faculty of trainers are some of the worlds leading
experts in their chosen field. We only use the best minds in the business
Weve been supporting our clients for over 20 years; you can be sure
that, as such, our track record makes us the lowest risk training partner
you could find
By focusing on the business issues behind the training need, we can
ensure that the content and focus are targeted 100% on the needs of
the business
Quality is critical to our success. Our reputation has been built over 20
years by delivering programmes of the highest standard. We will never
compromise on our desire to ensure that our courses surpass the
expectations of our clients, not meet them.
IFF is the chosen in-company training provider for some of the
worlds leading financial institutions, so rest assured youll be in
good company. Well also meet with you anywhere around the globe.
Only by understanding our clients business issues can we hope to add
substantial value. Thats why we work with our clients face to face all over
the world. If you would like one of our consultants to meet with you to talk
about your needs in more detail or if you would simply like more
information as to how youll benefit from our in-company programmes,
please contact Jeff Hearn (Managing Director) on +44 (0) 20 7017 7190
or email: jhearn@iirltd.co.uk
IN-COMPANY TRAINING SOLUTIONS
SAVE MONEY IMPROVE PEFORMANCE REDUCE RISK
If you have four or more people to train, our in-company courses can be delivered for you
anywhere in the world and are the perfect solution for you.
Course Leader: Richard Capps
Richard Capps trained as a barrister before entering banking, first joining Chase Manhattan Bank in London and New York,
then moving to merchant banking in Hong Kong and Australia firstly with Schroders and subsequently with Wardley, the
investment banking subsidiary of Hong Kong Bank. During this period he was primarily involved with designing structures to
deal with large transactions including limited recourse financing, corporate restructurings and acquisitions.
He later established himself as an independent consultant and, since that time, has served a clientele of private family groups
in undertaking limited recourse projects involving project vetting, due diligence, project modeling, documentation negotiation
and review, and negotiation with equity and banking providers.
Your comprehensive course agenda
Getting to Grips with Model
Design
Different analytical purposes - different
methods of modelling implementation
Valuation and feasibility models
Finance structuring models
Issues with merchant power models
Designing the Analysis Worksheet
Determining the functionality of the
model
Structuring how inputs will be accessed
and controlled
The importance of the logic flow
through the model
The layout of the worksheets within the
workbook
The layout of the individual worksheets
Case Study:
Introduction to the case on which
the practical course will be based
Implementation of the design
Practical Session:
The creation and formatting of the
worksheets
Setting up timelines and flags
Construction Phase Dynamics
Identifying (and explaining) the
elements the model needs to capture
Cost overruns
Delays
Variation orders
Staged payments
Maintenance and refurbishment cycle
Liquidated damages
Performance bonds
Retentions
Multiple currencies
The financing structure
Multiple tranche drawdowns
Interest during construction
Standby financings
Practical Session:
Implementing the construction
worksheet
Generation, Revenue and
Operating Costs
Identifying (and explaining) the
elements the model needs to capture
Rated capacity and internal works
power
Plant load factor
Planned outages
Unscheduled outages
The heat rate
Degradation
Thermal efficiency of fuel
Carbon content of fuel
Various other operating costs
Practical Session:
Implementing the model to Free
Cash Flow stage
Financing Issues
Identifying (and explaining) the
elements the model needs to capture
Annuity style amortisation
Straightline amortisation
Sculpted amortisation
Cash sweeps
Loan life cover ratio
Annual debt service cover ratio
Cashflow lockups
Practical Session:
Implementing several different
styles of financing worksheet
Analysis Key Concepts
Identifying (and explaining) the
elements the model needs to capture
Sensitivity analysis - e.g. for heat
rate, cost overrun, delays,
outages etc
Breakeven analysis
Scenario analysis
Practical Session:
Implementing an Analysis
worksheet
Common Errors and Pitfalls in
Models
Valuation Models, the modelling of
Inflation
The risk free rate
The discount rate
The time horizons
The modelling of capex
The implementation of IRR
calculations
The implementation of NPV
calculations
Volatility models, the modelling of
The different types of operating costs
Capital allowances
Deferred tax
Depreciation
Applying the Finishing Touches
to the Model
Dealing with circular references
Inserting the Status Worksheet
Inserting the Summary Worksheet
Reconciling the various elements in the
financial statements
Setting up worksheet controls and error
warnings
A walk-through of the completed model
Practical Session:
Finishing touches to the model
CASE STUDY
The case study that is used throughout the course is a
power generation modelling file. The excel file captures the
development, financing and operations of a gas-fired power
plant. However, the case simply serves as a practical
platform to illustrate a wider-range of specific
implementations. During the case study, the modelling
implications of wider range of power sector business
contexts will be considered:
Renewables as well as fossil fuel inputs
Merchant power as well as IPPs
Power transmission as well as generation
Power distribution as well as generation
As outlined in the course details, the case will be developed in
multiple practical sessions:
The planning and design of the model and the setup
The identification of the model's objectives
The functionality that the model requires
How the model is designed to achieve its designated
objectives - the model is a means-to-an-end, not an end in
itself
laying out worksheets and creating flags
i.e. the implementation of the items listed in first session
Planning and implementing the construction phase worksheet
Planning and implementing the operational phase of the plant
Implementing financing worksheets
Planning and implementing the Analysis Worksheet, to process
sensitivity, scenarios and break-even
Financial Modelling in the Power Sector
www.iff-training.com
Tel: +44 (0)20 7017 7190 / Email: cs@iff-training.com
FINANCIAL MODELLING IN THE
POWER SECTOR
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www.iff-training.com
Tel: +44 (0)20 7017 7190 / Email: cs@iff-training.com
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ways to register...
1 Tel: +44 (0)20 7017 7190
2 Fax: +44 (0)20 7017 7802
3 Email: cs@iff-training.com
4 Web: www.iff-training.com
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International Faculty of Finance
4th Floor, Maple House
149 Tottenham Court Road
London W1T 7AD
What happens if I have to cancel?
The following charges will apply for written notice received: 30 +
days before the course: 10%, 1530 days before the course: 50%,
115 days before the course: 100%
In the unfortunate event that a course is cancelled, IFF Ltd are not
liable for any costs incurred by participants in connection with the
course.
Transfers
The following charges will apply for written notice received: 30 +
days before the course: free of charge; 1530 days before the
course: 10%, 115 days before the course: 100%
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The personal information shown on this form, and/or provided by you,
will be held on a database and may be shared with other companies
in the Informa Group in the UK and internationally. If you do not wish
your details to be available to other companies in the Informa Group
please contact the Database Manager at the above address,
Tel +44 (0)20 7017 7077, Fax +44 (0)20 7017 7828
or email: integrity@iirltd.co.uk.
Occasionally your details may be obtained from, or made available to,
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International Faculty of Finance,
4th Floor, Maple House
149 Tottenham Court Road,
London W1T 7AD

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please tick which date you wish to register for, providing your contact
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contact details above.
Course: 3 day IFF Financial Modelling in the Power Sector
Training Course
Venue: Central London
3-5 September 2014 (FLF2855)
18-20 February 2015 (FLF3344)
Full Name:
Email Address:
Phone Number:
Administration Details:
Cost: Including documentation, lunch & refreshments your
investment in this course is 2,299 + VAT= 2,758.80
The VAT is subject to change and may differ from the advertised rate.
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Contact Jeff Hearn for more details:
+44 (0) 20 7017 7190
jhearn@iirltd.co.uk