Project Finance for Electricity and Renewable Energy

This course introduces students to the fundamentals of project finance as applied to utility-scale and commercial electricity generation, with a focus on renewable and hybrid energy systems. Students will learn how energy projects are structured, financed, and de-risked through a mix of equity, debt, and tax equity instruments. Emphasis is placed on understanding the capital stack, credit risk, and the contractual frameworks that underpin successful project development. The course covers revenue modeling, forecasting cash flows, and evaluating financial performance through key metrics such as internal rate of return (IRR), net present value (NPV), and debt service coverage ratio (DSCR). Students will also explore the roles of permitting, stakeholder engagement, risk management, and operating costs in project development - from early-stage diligence through operations. A practical case study on financing a solar-plus-storage project will give students hands-on exposure to the challenges and decisions faced by developers, investors, and communities in bringing clean energy projects to life.
 
Students are expected to enter the course with a foundation in basic financial literacy. This includes comfort working with spreadsheets, a general understanding of the time value of money, and familiarity with financial statements. Those who do not yet have this background should make use of outside resources in advance, as these skills are essential for success in the course.
 
In addition, students should have a working knowledge of how electricity is generated and delivered. Those who are new to the subject should either complete first or be concurrently enrolled in GLOB1-CE3100 - Foundations of the Electricity System.
 
COURSE TOPICS:

• Project Finance Basics and Capital Structures
• Revenue Models and Cash Flow Forecasting
• Debt, Equity, and Tax Equity Structures
• Due Diligence, Risk Allocation, and Contracting
• Permitting, Development, and Operations Risks
• Community and Stakeholder Engagement in Development
• Modeling Project Returns: IRR, NPV, DSCR
• Solar + Storage Project Finance

Continuing Education Units (CEU) : 2

You'll walk away with

• Knowledge of how utility, commercial, and joint electricity projects are financed, structured, and de-risked
• An understanding of key financial instruments and capital stacks
• The skills to evaluate returns, credit risks, and tax equity financing