At present, the energy sector is experiencing an unprecedented boom, driven by the global need for more sustainable and efficient energy sources. The course ‘Promoting a power station: economic and financial feasibility analysis of the investment’ prepares you to play a part in this transformation, equipping you with the essential skills to assess the viability of energy projects. You will learn how to manage investments and associated costs, how to finance electricity-related activities, and how to present the accounts for a power generation plant. Furthermore, you will develop skills in valuing investments using the discounted cash flow method – skills that are in high demand in today’s job market. Taking part in this course not only gives you an in-depth understanding of the sector, but also positions you as a competitive professional who is well-equipped to tackle the energy challenges of the future.
Promotion of a Power Station, Economic and Financial Feasibility Analysis of the Investment
Energy
65 hours
Introduction
Objectives
- To understand the promotion of investment in power stations.
- Identify the costs involved in operating a power station.
- Assess funding options for electricity-related activities.
- Interpret the financial statements of a power station.
- Analyse feasibility using the discounted cash flow method.
- Apply economic criteria to evaluate energy investments.
- To develop skills in analysing practical investment case studies.
Table of Contents
TEACHING UNIT 1. PROMOTING A PARK
Introduction
Stages of the promotion
Factors to consider when promoting a park
TEACHING UNIT 2. INVESTMENTS AND NECESSARY COSTS AT A POWER STATION
An introduction to electricity generation
Electricity generation technologies and costs
Economic characteristics of power generation technologies
Price formation in the daily wholesale electricity market
Bibliography
TEACHING UNIT 3. FINANCING ELECTRICITY-RELATED ACTIVITIES
Sources of project funding
Project vehicle company
Debt consolidation
“Project finance”
Historical background to “project finance”
Project characteristics
Project structure
Key elements of “project finance”
Stages of “project finance”
The need for a model
Financial structure of “project finance”
Interests in “project finance”
The risk
Project finance in practice
Risk management in “project finance”
Contracts as a risk management tool
TEACHING UNIT 4. THE ACCOUNTING PRESENTATION OF AN ELECTRICITY GENERATION PLANT
Definition of accountancy
Assets on the balance sheet
Liabilities on the balance sheet
The profit and loss account
Bibliography
TEACHING UNIT 5. VALUATION OF INVESTMENTS USING THE CASH FLOW DISCOUNT METHOD
Assessment and methods
Invest
Fund transfers
Economic evaluation criteria and their application to the field of electricity generation
Cash-flow discounting method
Economic risk
Difficult decisions. Abandoning the project
Some methodological issues
Strategic projects
Dividend method
Conclusion
Bibliography
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