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Power generation and renewables

Hydro power station financial model, built free.

A three-statement Excel model for a hydro and pumped hydro generator, built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Owns run-of-river, storage or pumped hydro stations that sell firm and peaking energy, capacity and ancillary services, constrained by water inflows and storage.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued and tested

    Discounted cash flow, with scenarios on the key drivers.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Hydro power station sample model.xlsx
The How It Works sheet of the sample hydro power station model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a hydro power station.

  1. How it earns revenue2 formulas
    Energy revenue · All energy assets
    Arbitrage revenueEnergy dischargedfrom generationRealised discharge price
    Certificates, ancillary and capacity revenue · All energy assets
    Certificate revenueCertificates createdCertificate price
  2. What drives its costs2 formulas
    Operating costs · All energy assets
    Operating costsO&M contractAsset managementLand leaseInsuranceGrid (TUOS) and connection chargesCommunity fund
    Fuel, charging energy and carbon costs · All energy assets
    Charging energy costEnergy chargedCharge (off-peak) priceNetwork charge on energy charged
  3. What it invests in3 formulas
    Asset base and depreciation · All energy assets
    Capital expenditureConstruction capexfrom development and constructionSustaining capex
    Asset base and depreciation · All energy assets
    DepreciationOpening net book valueCapital expenditureShare of the period in operation (after COD)from development and constructionshare of the yearRemaining life at period start
    Asset base and depreciation · All energy assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

22 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Wholesale electricity price curveAdviser price curveThe wholesale electricity price forecast used by the revenue and cost parts that need it.
  • Decommissioning and restoration provisionsPresent value with accretionProvisions to remove generation assets, abandon wells and restore sites — recognition, unwinding and spend.
  • Energy and utility KPIsGeneration unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
  • Interest-rate hedgingHedged share at a fixed rate
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Discount rate (WACC)CAPM at target gearing
  • Asset registerEnergy asset registerThe facts every other part of the model builds on — capacity, opening book value and remaining life.
  • GenerationStorage cycles and state of healthElectricity sent out (or discharged) by each asset in each period.
  • Energy revenueStorage arbitrageRevenue from selling electricity (or discharging storage) under contracts and in the wholesale market.
  • Operating costsCost lines with escalationSite operating costs — O&M, asset management, land lease, insurance, grid charges and community payments.
  • Asset base and depreciationStraight-line depreciation over remaining lifeSustaining and replacement capex and depreciation of each asset's property, plant and equipment.
  • Development and constructionTotal capex spread to CODConstruction capex, commercial operation date and ramp-up for new assets, and the development pipeline.
  • Certificates, ancillary and capacity revenueGreen certificates × certificate priceRevenue beyond energy sales — green certificates, frequency control and other ancillary services, and capacity or support payments.
  • Fuel, charging energy and carbon costsCharging or pumping energyVariable cost of the energy an asset consumes — gas, coal, charging or pumping electricity, electrolyser power — and its carbon cost.
Key numbers

The numbers it tracks.

  1. 01generation in wet and dry years
  2. 02realised price per MWh
  3. 03pumping spread
  4. 04EBITDA per MW
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
  • Asset acquisition
Related models

More in power generation and renewables.

Every energy and utilities model

Looking for a hydro power station financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.