The British Academy for Training and Development offers a comprehensive and practical programme Financing of Energy Projects Training Course for Managers. The course offers professionals with the tools and strategies required to secure, structure and manage funding for energy initiatives. This course is likely to provide the necessary key knowledge across a comprehensive range of such critical topics related to energy project finance. It starts with the principles of project financing, having special attention to the energy sector dynamics, and provides deep insights into financial modelling for energy projects in terms of building and analysing models tailored to renewable and conventional energy projects.

A huge part of the course is risk assessment and mitigation covering how to assess project risks and practical solutions for them. Investment evaluation techniques necessary for project appraisal and economic feasibility studies, such as net present value, (NPV), internal rate of return (IRR), and payback period, are also covered by the course. 

The enrolment will also include sources of funding and capital structuring while focusing on the roles of an equity investor, development banks, and a private lender. They will also learn about the legal and contractual frameworks which govern energy projects, i.e. power purchase agreements (PPAs), engineering, procurement and construction (EPC) contracts, operation and maintenance (O&M) agreements.

The subject would tend to include regulatory frameworks and incentives from the government associated with renewable energy project financing. There will be case studies on public-private partnership (PPP) projects and international financing mechanisms, giving attendees a global perspective.

It is the empowerment of the manager to possess trendy knowledge with regards to financial planning, stakeholder management, and risk control in order to ensure successful implementation of energy projects.

Objective:

The objectives of Financing of Energy Projects Training Course are:

Evaluate the various methods of financing projects  to make sound recommendationsManage Project Finance contractsManage the Costs of Finance and recommend appropriate methods of financeEvaluate energy projects and meet finance regulationsManage project risk effectivelyAppreciate the specificities of the accounting standards in the energy projectsUnderstand financial reporting requirements for the energy sector under IFRS and GAAPAnalyse the financial statements of his organisationUse the financial ratios to analyse the financial situationManage the cash and working capital effectivelyDefine fundamentals of cost analysis and capital budgetingDetermine the cost of capital to evaluate alternative sources of financingUse the techniques of investment AppraisalUnderstand the derivatives and types of option in the energy sectorWho Should Attend?

This training course is suitable for: 

Finance managersProject managersThose with an interest in financial decision makingLine managers whose role involves making financial decisionsThose acting within budget constraintsBoard of Directors & Senior ManagementAccounting Department ManagersCorporate Accountants, Financial Controllers, and Treasury OfficersManagement AccountantsFinancial and Investment AnalystsJoint Venture Accountants and AuditorsExternal, Financial, and Internal AuditorsGovernment Regulators and AuditorsHow will attendees benefit?

Attendees of the Financing of Energy Projects Training Course for Managers will gain a range of practical and strategic benefits, including:

Knowledge of financial arrangements used in energy project development enables one to navigate complex financial environments with capability and confidence.This includes building and interpreting models for the financial assessment of investment and project viability.Stronger risk management skills enable them to identify, assess, and mitigate financial and operational risks pertinent to energy projects.Knowledge of diverse financing structures and sources: private equity, debt financing, and government-backed programs.Familiarity with crucial contracting and legal frameworks will guarantee compliance and smooth interaction with all stakeholders.An insight into global best practice and international financing mechanisms allows for input in both local and international energy-related projects.Increased skills in project appraisal and feasibility analysis will ensure that the projects are economically viable before their implementation.Strategic skills for liaison and communication with stakeholders are a must for securing funding and sustaining partnerships.

By the end of this course, attendees will be equipped to manage, finance, and lead energy projects with an increased level of confidence and technical knowledge.

OVERVIEW OF ENERGY PROJECTS & TOOLS OF FINANCE

• Definition of Energy Management Projects & the Objectives

• The Nature of the Energy Projects and Renewable Energies

• Finance for the Energy Projects: A Summary

• Financial Decision-Making in the Energy Projects

• The Business Environment

• Business Objectives

• Stakeholders

• Corporate Governance

• A Review of the Tools of Finance

• Types of Financing Models in Energy Projects

ACCOUNTING ISSUES IN EXPLORATION & EVALUATION OF ENERGY PROJECTS

• Accounting System and Principles

• International Accounting Standards

• Pre-Exploration Activities

• Successful Efforts Method

• Acquisition Costs

• Exploration Costs (Drilling vs. Nondrilling)

• Unproved vs. Proved Property

• Development and Production Costs

• Impairment

• Full Cost Method

• Revenue Recognition

• IFRS within the Energy sector

BASICS OF FINANCIAL MANAGEMENT OF ENERGY PROJECTS

• Objectives & Functions of Financial Management

• Financial Arrangements: Details and Terminology

• Short-term Financial Management:

• Cash and Cash Equivalents

• Short-Term Debts

• Cash Management

• Understanding Financial Statements

• Profit and Loss Account (Income Statement)

• Balance Sheet

• Cash Flow Statement

• The Term Structure of Interest Rates

• External & Internal Financial Audit

• Management Reports

• Responsibility Reporting

• Analysis of Variances

FINANCIAL ANALYSIS IN ENERGY PROJECTS

• Fundamentals of Financial Analysis

• Ratio Analysis

• Measures of Operating & Financial Performance

• Sensitivity and Risk Analysis

• Tax Implications

• Financial Annual Reports

• Energy Audits

FINANCING ENERGY PROJECTS

• Long-term Financial Resources

• Risk assessment and management

• Returns

• Basic Types of Financing

• Debt

• Equity

• Grants and Guarantees

• Cash Management & Banking Facilities

• Mergers and Acquisitions Practices Today

• Project Financing/Shared Saving/Performance Contracting

• Screening Energy Efficiency Projects Using Financial & Economic Rates of Return

• Dividends and Share Repurchases Compared

CAPITAL BUDGETING OF ENERGY PROJECTS

• Investment Proposals & Means of Project Evaluation

• Estimating Cash Flows for Capital Budgeting

• Cash Flows from Accounting Figures

• Biases in Capital Budgeting

• Options in Capital Budgeting

• Risk Analysis and Capital Budgeting

• Risk and Cost-Sharing Arrangements

• Joint Ventures

• Transfers of Interests or Risks

• Production Sharing Contracts

• Long-term Gas Contracts

FINANCIAL STRUCTURE COSTING OF ENERGY PROJECTS

• Fundamentals of Cost Analysis

• Cost of Capital

• Cost of Debt

• Cost of Equity

• Weighted Average Cost of Capital (WACC)

• Equity and Commodity Risk

• Optimal Capital Structure

ENERGY PROJECT VALUATION & INVESTMENT APPRAISAL

• Why Firms Merge

• Valuation Methods

• Payback

• Net Present Value (NPV) and Cash Flow

• Return on Investment (ROI) and Internal Rate of Return (IRR)

• Discounted Payback

• Investment Need, Appraisal, and Criteria

• Criteria

• Energy Proposals vs Other Competitive Proposals

• Investment Appraisal

• Protecting Energy Investment

CAPITAL STRUCTURE OF ENERGY PROJECTS

• Capital Structure Concept

• Capital Expenditures

• Capital Structure and Financial Distress

• Agency Costs in Financial Distress

• Causes of Financial Distress

• Costs of Financial Distress

• Design Aspects for Measures to Attract Privet Investment

THE ROLE OF FINANCIAL INSTRUMENTS OF ENERGY PROJECTS

• Derivative Markets

• Forward Contracts

• Futures Contracts

• Swap Contracts

• Option Contracts

• Types of Options

• Risk Modification with Options