Energy Project Finance and Risk Management

02 Nov 09 - 06 Nov 09 - London Book this course 26 Apr 10 - 30 Apr 10 - London Book this course 01 Nov 10 - 05 Nov 10 - London Book this course
Duration: 1 week
Price:£3200
Course ref: 9ENERGYFIN

Overview:

This course will provide participants with the skills and knowledge to understand and be equipped to appraise the financial viability of projects by analysing future cash flows against capital and operational costs on a time value basis. Participants will learn how to calculate net present value (NPV) resulting from proposed investments, analyse projects and prioritise capital spend according to projected returns on investment.

The course aims to provide participants with available options for financing projects whether loan capital, equity capital or other finance vehicles such as design build, finance and operate schemes. Having learned how to finance projects, participants will then be guided in acquiring knowledge to protect their investment through robust risk management tools; participants will learn how to protect commodity prices for oil, gas and electricity. With the emergence of carbon as a trading commodity this course will include an introduction to carbon finance and international carbon trading. Participants will look at the principles of Kyoto Protocol and how Clean Development Mechanism (CDM) and Joint Implementation (JI) projects are financed.

Participants will also learn how to manage non-financial risk for example legislation, health, safety and stakeholders including shareholder interests. Although non-financial, these risks, if not managed properly, will impact on project finances in an adverse way.
 



Learning objective
You will be able to:
  • Obtain the capability to significantly broaden your knowledge and understanding of finance and be better able to make sense of the language of the financial world
  • Receive practical tuition to obtain the necessary skills to construct financial models to appraise returns on investment, prioritise projects on financial merit and effectively communicate your findings to your senior colleagues for consideration and approval
  • Learn about different types of carbon finance, how to manage financial risk associated with such schemes and how to attract carbon finance from overseas for local investment
  • Managing stakeholder expectations is important and you will learn how expectations can be managed more effectively to reduce the risk of damage to your organisation’s reputation at home and abroad
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Course content
  • Introduction to finance
  • The time value of money
  • Investment criteria
  • Discounted cash flow analysis
  • Project analysis, scenario planning, sensitivity analysis real options theory, Monte Carlo method and other methods in investment decision making
  • Introduction to risk, return and the opportunity cost of capital
  • Risk management (real options, financial risk and commodity price risk management for energy products)
  • Financing techniques and capital structures
  • Carbon finance
  • Non financial aspects of project risk; for example environmental legislation or health and safety
  • Investor and stakeholder relationship management including press coverage and public relations
  • Presenting project proposals

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