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Power generation and renewables

Renewable energy developer financial model, built free.

A three-statement Excel model for a renewable project developer (develop to sell), 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

Originates, permits and connects solar, wind and storage projects and sells them (or stakes in them) at ready-to-build or commercial operation for a development margin, so value rests on a risked pipeline.

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 three ways

    Discounted cash flow, sum of the parts and net asset value, side by side.

  • 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
Renewable energy developer sample model.xlsx
The How It Works sheet of the sample renewable energy developer 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 renewable energy developer.

  1. How it earns revenue2 formulas
    Energy revenue · All energy assets
    Electricity salesPPA revenueMerchant revenue
    Certificates, ancillary and capacity revenue · All energy assets
    Certificate revenueCertificates createdCertificate price
  2. What drives its costs3 formulas
    Operating costs · All energy assets
    Operating costsO&M contractAsset managementLand leaseInsuranceGrid (TUOS) and connection chargesCommunity fund
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · Across the business
    Total average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
  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
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Net asset valueBook net asset value
  • Wholesale electricity price curveAdviser price curveThe wholesale electricity price forecast used by the revenue and cost parts that need it.
  • Energy and utility KPIsGeneration unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Discount rate (WACC)CAPM at target gearing
  • Sum of the partsRegister of parts on mixed bases
  • Enterprise value to equity bridgeNet debt at the valuation date
  • 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 revenuePPA with merchant tailRevenue 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.
Key numbers

The numbers it tracks.

  1. 01pipeline MW by stage
  2. 02MW sold per year
  3. 03development margin per MW
  4. 04development spend
  5. 05risked NPV of pipeline
  6. 06cash runway
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in power generation and renewables.

Every energy and utilities model

Looking for a renewable energy developer 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.