PROJECT FINANCE MODEL: WIND POWER GENERATION Name   https://www.financial-simulation.com          
                             
INSTRUCTIONS                            
(This example is in US$ Thousand, except for the unit prices, which are in US$)
Year 0 reflects the starting assumptions, which will be applicable starting in year 1.
Blue cells must be filled out by the user.
CALCULATION OF GROSS OPERATING MARGIN
A) Operating income:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Tariff for sales to the network (US$/kWh)
Annual increase of the tariff
Electricity volume of sales to the network (mWh)
Annual increase of the volume
Income from sales to the network
TOTAL OPERATING INCOME
B) Expense:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Annual increase of these expenses
Total operation and maintenance expenses
TOTAL OPERATING EXPENSE
GROSS OPERATING MARGIN
Annual increase
CALCULATION OF DEPRECIATION
 
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Initial investment in fixed assets
Depreciation term (years)
Initial investment in capitalized expenses
Amortization term (years)
Depreciation of fixed assets
Amortization of capitalized expenses
TOTAL AMORTIZATION EXPENSE
Evolution of fixed assets and capitalized expenses Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross fixed assets 
Accumulated depreciation
Net fixed assets 
Gross capitalized expenses
Accumulated amortization
Net capitalized expenses
DEBT SERVICE CALCULATION
 
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Initial investment in fixed assets and capitalized expenses
Percentage to be financed by capital
Percentage to be financed by debt
Initial amount of debt
Repayment term (years)
Annual repayment
Amount of debt at year end
Average amount of debt
Reference interest rate (Euribor or other)
Spread
Interest rate of debt
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Annual amount of interest
Annual debt service (principal + interest)
PROFIT AND LOSS STATEMENTS
 
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating income
Operating expense
Operating gross margin
 - Depreciation
 - Interest
Profit before tax
(Tax rate)
 - Income tax
NET PROFIT
Percentage of increase
CALCULATION OF CASH FLOW FOR DEBT SERVICE
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating gross margin
 - Income tax
 - Increase in working capital needs (WCN)
(WCN as a  % of operating income)
WCN
Calculation of WCN:
Cash needed for operations as a % of operating income
Cash needed for operations
Receivables as a % of operating income
Receivables
Suppliers as a % of operating income
Suppliers
Cash flow available for debt service (CFD)
CALCULATION OF DEBT SERVICE COVERAGE RATIO (DSCR)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash flow available for debt service (CFD)
Annual debt service (DS)
DEBT SERVICE COVERAGE RATIO (DSCR)
CALCULATION OF LOAN LIFE COVERAGE RATIO (LLCR)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash flow available for debt service (CFD)
Discount rate to be applied to CFD
Annual discount factor for the selected discount rate Año 0
Año 1
Año 2
Año 3
Año 4
Año 5
Año 6
Año 7
Año 8
Año 9
Año 10
Present value of the annual CFD
Año 0
Año 1
Año 2
Año 3
Año 4
Año 5
Año 6
Año 7
Año 8
Año 9
Año 10
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Present value of future CFD for each year
0   
Outstanding debt as of year end
LOAN LIFE COVERAGE RATIO (LLCR)
BALANCE SHEET
 
BALANCE SHEET BEFORE DIVIDEND PAYMENT
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Additional cash (if negative, it would represent additional debt)
Current year profit
Accumulated reserves
CALCULATION OF DIVIDENDS PAYABLE
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash flow available for debt service (CFD)
Annual debt service (DS)
CF available for dividends (CFDiv = CFD-DS)
Accumulated CFDiv 
Current year profit
Accumulated profit: limit for dividend payable
Accumulated dividend payable
Annual dividend payable
BALANCE SHEET AFTER DIVIDEND PAYMENT
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Additional cash (to balance the figures)
Reserves
CALCULATION OF NPV, IRR AND PAY-BACK TERM ACCORDING TO INVESTED CAPITAL AND DIVIDENDS PAYABLE (not considering a residual value of the project)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Invested capital
Annual dividends payable
Discount rate to be applied for NPV calculation
Discount factor for this rate
Discounted dividends
Present value of dividends
NPV of the investment
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Investment schedulle
IRR OF THE INVESTMENT
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Dividends payable
Accumulated dividends payable (A)
Invested capital (B)
A - B
Investment pay-back term
PROJECT SUMMARY SHEET: ASSUMPTIONS AND RESULTS
Name:
OPERATIONAL ASPECTS
Inflation assumptions for these initial estimations:
Starting volumes:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Electricity volume of sales to the network 
Initial prices:
Tariff for sales to the network 
ECONOMIC & FINANCIAL ASPECTS
Total investment
To be financed by capital
To be financed by debt
Term of the loan
Interest rate of the loan
Working capital needs as a  % of operating income
Discount rate applied for NPV calculation
RESULTS
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Total operating income
Gross operating margin
Net profit
Cash flow available for debt service (CFD)
Annual debt service (DS)
Debt service coverage ratio (DSCR)
Loan life coverage ratio (LLCR)
Annual dividends payable
NPV of  invested capital
IRR of invested capital
Pay-back term of invested capital
and