F&ES 635b / 2019-2020
Renewable Energy Project Finance
Spring 2020: M, 2:30-5:20, Burke
The course is intended to be a practicum, exposing students to real-world tools of the trade as well as the theory underlying them. In place of a textbook, students are provided with approximately 400 pages of actual project documents used for a U.S. wind energy project constructed relatively recently. Through weekly homework assignments, students develop the skills necessary to construct a detailed financial model, largely comparable to what would be used by an investment firm, project developer, or independent power producer. Modeling skills include sizing debt capacity, sensitivity analysis, stochastic forecasting, taxes, and
the creation of financial statements. Lectures also provide an introduction to risk management, energy market dynamics, alternative contractual structures, financial structuring, and the core engineering and risks inherent in the most common renewable energy technologies.