Rewenable Energy Banker - NEED HELP
Seeking some insight into Renewable Energy sector. I roughly have 3 years of experience working for a Boutique/Middle Market bank in the Consumer Products sector; However, now I am independent consultant and I have been contracted by individual to create a model for a start-up renewable energy - Wind Technology company and I wanted to get some insight from you Monkey's, since a lot of you may be experts in the sector.
Any insight you can provide would greatly appreciated... Also, I would be open to contracting a person to create the financial model if you have expertise in the sector and can add tremendous value to the project. - PM if you are interested.
Also if there are any resources online to help me better understand the sector and become a better expert fairly quick that would appreciated as well..
Please only provide constructive and positive comments - I only put this since I have read many of the responses given to others in the forums.
Thanks in advance!
Is it a developer or a company that just manufacturers wind turbines?
HerSerendipity, developer Im sure. I doubt a manufacturer is going to hire him (no offense to OP, just noting the scale needed to be a manufacturer and the firms they do business with likely aren't asking how to build the model on WSO). But the Wind Technology term is a bit curious.
Start with the construction schedule, incorporate a timeline budget and dollar budget and allow significant slippage in both. Don't forget transportation costs as this is a significant chunk of start-up expenses, also the substation and any necessary routing to a major grid-line which can handle the output load.
Next determine the location and rated wind speeds (this should be based on wind speed poles setup on the site in the initial phases). Look at all the possible turbine options and their stats including MW/h generation, nominal wind speeds and shut off speeds. You'll also need to understand the turbines power curve. Based on all this come up with a capacity utilization rate per annum. You'll need to come up with a turbine size x count that maximizes the wind on the site, this has already likely been done by the engineers and surveyors.
Build an SG&A schedule based on maintenance and day to day operations of the wind farm. There are people who do this for you for a % of revenue. Do the research and use an assumption.
Maintenance CapEx your turbines = depreciation... depending on servicing/warranty terms of the turbine manufacturer this could vary after the warranty period.
Revenue should be based off of the PPA terms. Make sure to include any government incentive programs and make sure you understand how a project is eligible for the programs. This is likely already been done by the lawyers. Also make sure you understand the tax structure, carbon credit implications, etc...
Its obviously much more involved than that especially if you're missing pieces of the puzzle... but there's the 10 cent tour for you.
Good synopsis by Marcus.
And yes, the wind technology term led to the inquiry of whether or not it was a manufacturer (or something other than a developer). Or perhaps something related towards the technical aspects of wind turbines, etc.
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