Certificate in Renewable Power Economics
A comprehensive 2-day introduction to the economics, competitiveness and financial planning of renewable power
21—22 May 2012, London, United Kingdom
- Understand the cash flow influences and risk factors in renewable power projects
- Quantify the sensitivity of renewable power project economics to their key variables and risk factors
- Discuss the competitiveness of renewable power versus its “conventional” and other competitors
- Analyse the market context, trends and future prospects of different renewable power solutions
Whether you are working within one of the “green power” sectors or evaluating investment into it, this comprehensive, time-effective training course ensures you are brought up-to-speed with the key economic aspects of the various renewable energy solutions. Explaining both technological and economic factors in a clear and business-focused manner, the course is particularly valuable to those in senior, non-technical positions, including business development, finance, legal, marketing or other commercial functions.
You will briefly revise how different technologies convert, generate and store renewable energy, then discuss the potential of each to contribute to large-scale power generation needs, gaining an independent view of the business risks, economics and deployment challenges that they face, including financing and policy conditions.
Level & Style
The course explains all key concepts and terminology, be they in energy, technology or finance, and so assumes no prior technical or financial knowledge. Indeed the course is specifically designed to be of value to those who need to understand the various fundamentals, market developments and financial measures.
The course runs in a friendly, informal manner, encouraging discussions and questions to ensure that participants get the most out of their time. In order to better understand and illustrate the various topics, a variety of simple calculations, cash flow models, free software tools and other explanatory exercises will be incorporated.
(include lunch plus morning and afternoon refreshment breaks):
Day 1: 09:00 - 17:00 // Day 2: 09:00 – 16.00
About your trainer
Dr John Massey is Green Power Academy's founder, Training Director, in-house renewables expert and lead trainer.
Combining a strong academic science background with over fifteen years commercial experience of industry research, analysis and training across a variety of “new technology “ industries (including conventional and renewable energy, telecoms and IT), Dr Massey is expert in demystifying the terminology and workings of new technologies, and presenting their commercial and business context.
He delivers training globally, to senior executives from a range of organisations from project development to finance and has also developed educational material for both live and distance learning courses.
He holds a 1st Class Honours degree in Natural Sciences from the University of Cambridge, a PhD in Earth Sciences and a Diploma in Economics, Innovation and Sustainability.
“Very solid introduction from a very knowledgeable instructor”
“Rich in discussion”
“Good balance between theoretical and interactive”
A Review of Renewable Power Markets
- Current renewable power (and CHP) markets and applications
- Investment trends and growth
- Deployment challenges, barriers and costs
- The impact of renewable technology on other power market aspects, such as energy markets, grid distribution and storage
Key concepts in understanding Renewable Energy Economics
- Energy, work and power
- Forms of energy and energy conversion, including measures of “efficiency”
- Conventional power generation and grid distribution
- Energy Storage (characteristics, current usage and future solutions)
- The physical and practical limits on available natural energy resources
A Brief Review of Renewable Power Solutions
- Electric-only solutions:
- Solar Photovoltaics (PV & CPV)
- Wind Power (onshore & offshore)
- Ocean Power (wave & tidal)
- Thermal and potential CHP solutions:
- Solar CSP (Concentrated Solar Power / Solar Thermal Power)
- Geothermal Energy
- Biopower (and other Bioenergy routes to power)
- Large-scale vs. distributed (small-scale) power generation
The economics of renewable power projects
- The factors determining profitability:
- energy resource vs. cost to convert vs. power sale price
- Understanding renewable power opportunities and associated risks:
- Resource risks, such as forecasting risks and sustainability
- Technology risks and power conversion issues
- Power markets: their attributes and challenges for renewables:
- Merit-order power pricing
- Grid balancing and demand management, including balancing costs
Cash flows for renewable power projects
- Modelling cash flows from energy sales, capital and operating costs
- The impact of additional factors such as: tax and depreciation; inflation; renewable policy incentives; fixed prices (PPAs or FiTs); fuel costs etc.
- Sensitivity Analysis: evaluating the impact of mistakes or uncertainties in resource evaluation, cost estimates, project lifetimes and more
- Quantifying the potential returns from energy storage
Levelized Cost of Electricity (LCOE)& other economic measures
- Understanding the variety of ways used to derive of LCOE; some simple, some complex
- Relating LCOE to the project cash flow, and to other project measures such as cost per W, NPV, IRR and payback times
- Evaluating the factors which most impact LCOE; including both project costs and energy generation and financing factors such as discount rates and debt/equity splits
- LCOE versus marginal cost and electricity price
- The dangers of interpreting others’ LCOE figures and its limitations as a metric: what it can and cannot tell about the value of a project
Project Financing considerations
- Risk factors and mitigation: the importance of quantifying the financial impacts
- Which are the biggest drivers of “bankability”?
- Sources of financing:
- Banks, Corporate & Private investors, Capital markets
- Understanding where and when different options will be available
- How financing costs impact project returns
Project Simulation Tools
- Introducing free excel and software tools for modelling and simulating renewable power projects and their financial returns, including:
- A simple cash-flow spreadsheet, RETScreen (a more advanced spreadsheet-based model) and SAM (an advanced software tool)