Course: Bankability and Support Mechanisms for Renewable Energy Projects

renac renewables academyDates: 1 October 2015 – 31 March 2015
Organisation: RENAC
Location: Online
Register: Bankability and Support Mechanisms for Renewable Energy Projects

Description: Setting appropriate legal and regulatory frameworks is essential for the successful development of renewable energy markets. This training transfers knowledge on different types of support mechanisms for renewable energy and their respective methodology. Also, participants will learn about the most critical parameters to develop bankable wind and PV projects.

Topics:

Economic indicators:

  • Levelised cost of electricity (LCOE)  
  • Net present value (NPV)
  • Pay-back method and pay-back period T
  • Internal rate of return (IRR)
  • Debt service coverage ratio (DSCR) 

Bankability of Wind- and PV-Projects:

  • Process perspective on RE project financing and bankability assessments
  • SPV-contract negotiation
  • Business plan requirements from the banker’s perspective
  • Checklist for banks: risk assessment guidelines and project monitoring

Support mechanisms for renewable energy:

  • Grid parity and fuel parity of renewables
  • Net metering design 
  • Feed-in tariff (Fit) design
  • Auction mechanisms (sealed bid and descending clock auctions)
  • Quota-based mechanisms using tradable green certificate mechanisms (TGCs) and renewable portfolio standards (RPSs)
  • Financing renewable energy support mechanisms and frameworks (allocation mechanism and fund model)
  • Electricity markets and revenue streams (the ’merit order effect’)
  • Support mechanisms and risk perception for project financing