We can deliver this course in-house:

Your company, your content, your

location, your needs
Contact Jeff Hearn:
+44 (0)207 017 7190
jeff.hearn@iirltd.co.uk

FINANCIAL
MODELLING IN
THE POWER
SECTOR
A highly practical guide to the intricacies
and nuances of Excel modelling in
the power sector

London Dates: 16-18 May 2016 & 5-7 December 2016

Course benefits:

COURSE LEADER
Richard Capps, International financial
modelling expert

Learn how to avoid costly errors by ensuring your financial modelling is

100% robust

Appreciate best practice in model design and implementation

Identify the major modelling issues in financing and operating power plants
Develop and implement various worksheets of the model

Understand the application of best practice modelling techniques

throughout the different stages of the model

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.ife-training.com

Tel: +44 (0)20 7017 7190 / Email: cs@ife-training.com

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

Take home 600MB of additional

reading on excel and VBA, selftuition exercises on financial
modelling tasks, and illustrative
and template models

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.

Course Leader: Richard Capps

Richard brings to the task of modelling a rich blend of business experience. Shortly after qualifying as a barrister in London,
he switched to banking and for 5 years worked in corporate lending in New York and London. He then moved into merchant
banking in Hong Kong and in Australia and for 6 years was engaged in mergers and acquisitions and corporate restructurings.
Following this period on the banking side, he served for another 6 years as the CFO for a large corporate group with a dual
head office in the USA and Australia.
Having honed his modelling expertise over the past 20 years, as an independent consultant he is now commissioned to build
financial models for a range of clients. Recent commissions have been for a petrochemicals complex, a fleet of LNG vessels, a
power generation restructuring, a coal mine, a retailing organisation and food processing company. He also has extensive
experience of delivering training courses in project finance, corporate finance, loan documentation as well as financial modelling.
Hear from the trainer himself at: http://www.iff-training.com/VIDFMP

WHY CHOOSE IFE 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)

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.

Many organisations have realised that IFE 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
IFE 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

IFE 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: jeff.hearn@ife-training.com

www.ife-training.com

Tel: +44 (0)20 7017 7190 / Email: cs@ife-training.com

Your comprehensive course agenda

Financial Modelling in the Power Sector

CASE STUDY

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

Getting to Grips with Model

Design

PRA
C

PRA
TI

C A L SES

SI

ON

Analysis Key Concepts

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

Identifying (and explaining) the

www.ife-training.com

Practical Session:
Implementing an Analysis
worksheet

Common Errors and Pitfalls in

Models

Tel: +44 (0)20 7017 7190 / Email: cs@ife-training.com

TI

C A L SES

ON

Practical Session:
Implementing several
different styles of financing
worksheet

C A L SES

SI

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

Practical Session:
Implementing the model to
Free Cash Flow stage

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
C

Construction Phase Dynamics

C A L SES

Financing Issues

PRA

ON

PRA

SI

Practical Session:
The creation and formatting
of the worksheets
Setting up timelines and
flags

TI

TI

ON

C A L SES

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
ON

TI

Practical Session:
Implementing the
construction worksheet

Generation, Revenue and

Operating Costs

SI

Case Study:
Introduction to the case on
which the practical course
will be based
Implementation of the design

elements the model needs to capture

Sensitivity analysis - e.g. for heat
rate, cost overrun, delays,
outages etc
Breakeven analysis
Scenario analysis
SI

STU

C A L SES

ON

SE

TI

SI

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

Interest during construction

Standby financings

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

PRA

STU

PRA

SE

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:
A

Practical Session:
Finishing touches to the
model

In-Company Training

Watch the video here: www.ife-training.com/IFEINCVID

The International Faculty of Energy has

been the world leader in specialist
in-company training for over 20 years. We
excel at designing and providing customised
training solutions which meet your
organisational goals, objectives and
business challenges, whilst delivering an
outstanding return on investment.
Our international faculty of expert trainers
will create the perfect programme for your
needs. Our in-company courses can also
save you up to 40% compared to traditional
public courses, making big savings on travel
costs and reduced time away from the desk.

IFE delivers in-company training to clients all

over the world, at all levels within an
organisation across every energy sector.
This is what makes us so successful in
meeting the diverse needs of our clients.
Not only does our reputation for quality make
us different from other training organisations,
but we have a passion to ensure that our
courses surpass the expectations of our
clients, not just meet them.

Why choose IFE In-company Training?

Cost Efficient
Customised Content
Convenient
Specially Selected Trainer
Free Pre-course Assessment
Consistent Quality
Post Course Evaluation
Dedicated Account Manager
Dedicated Logistics Manager
Tailored Course Materials
Interactive & Practical
Case Studies Tailored to Specific
Regions & Sectors

Rest assured that when choosing IFE not

only are you making a safe decision financially
and professionally we guarantee the results
you need to achieve from training. When it
comes to improving the skills, knowledge and
performance of your team, department or
organisation IFE in-company training is the
ultimate solution.
Contact us to discuss further:
jeff.hearn@ife-training.com
+44 (0)20 7017 7193

www.ife-training.com Tel: +44 (0)20 7017 7190 Email: cs@ife-training.com

FINANCIAL MODELLING IN THE

POWER SECTOR
PK=RK1279

ways to register...
1
2
3
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5

Tel:
+44 (0)20 7017 7190
Fax:
+44 (0)20 7017 7802
Email: cs@ife-training.com
Web: www.ife-training.com
Mail: Customer Service Manager

Your VIP code is on the address label. If no label, please quote

International Faculty of Energy

4th Floor, Maple House
149 Tottenham Court Road
London W1T 7AD

A X

IFE Training is accredited by the British

Accreditation Council (BAC). The British
Accreditation Council is recognised
internationally and provides the clearest mark of
educational quality and excellence. Accreditation
by BAC is recognised by the UK Border Agency
so the fact that IFE is BAC-accredited should
help with your visa application.

If you would like us to contact you with a registration form via email,
please tick which date you wish to register for, providing your contact
details below in BLOCK CAPITALS. You can send this to us, using the
contact details above.

Course:
Venue:

3 day IFE Financial Modelling in the Power Sector

Training Course
Central London

16-18 May 2016 (FLF3647)

5-7 December 2016 (FLF3929)

Save money with in-house training

SAVE up to 40% and improve performance

with our cost-effective tailored in-house courses
Contact Jeff Hearn for more details:
+44 (0) 20 7017 7190
jeff.hearn@ife-training.com

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, IFE Ltd are not
liable for any costs incurred by participants in connection with the
course.

Transfers

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days before the course: free of charge; 1530 days before the
course: 10%, 115 days before the course: 100%

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Cost: Including documentation, lunch & refreshments your

investment in this course is 2,399.00 = 2,878.80

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