Project finance: Solar + storage

Hi everyone!

Would anyone have, know where I can get, or knows anyone that knows where I can find a combined solar plus storage project finance model example or template? I've looked everywhere.

Thank you so so much!!

 

Hey there!

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Sources: Renewable Energy PE Overview, Is Project Finance interesting?, Looking for seed money but no idea on the how/what/who, Thoughts on Power and Renewables IB, Renewables valuations have gotten out of hand

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Look up Ed Bodmer. He has a blog with pretty much every project finance/tax equity resource you can think of, and they're all free. The layout of his website is kind of disorganized but if you have trouble finding something you can email him directly and he'll likely respond pretty quickly.

 

In my experience, developers maintain two separate models, one for the solar project and one for the storage project. The solar project is typically the "main" model and they add some high level cost and revenue adders that are outputs from the storage model.

The reason for this is that the projects are financed as essentially two standalone projects. However, they need to combine the economics when negotiating offtake agreements.

 

This is not correct. If the project(s) are being financed in a single facility there would only be 1 model. The debt sizing portion of the model really shouldn't change. You apply various DSCRs to various types of cash flows. There will be more revenue line items in the pro-forma though. The solar will have your typical PPA revenue and maybe merchant energy revenue. The BESS might have its own tolling agreement or RA contract and potentially ancillary services and merchant energy arbitrage. The values for the merchant revenue streams would typically come from a consultant or software the sponsor is using.

 

so far this is what i've seen in a first-run. but i think when there is co-location, they'll try to merge the two in a reasonable format (may be later down the track pending availability/resourcing).

what is your experience with developers?

 

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