Financial Modelling for RE Projects

In order to strengthen strategic foresight on options influencing possible outcomes of renewable tenders, a financial model adapted to renewable energies projects in Algeria was presented and discussed. On the first day, a range of key financial concepts – amongst others, net present value, discount factors, internal rate of return –, project finance approaches and there application in the Algerian context were discussed in detail. Following this introductory session, the expert presented a financial model adapted to renewable energies projects in Algeria, including detailed exchange on the factors to be considered. The second day focussed on cost of project finance for specific RE projects and risk management factors included in the financial model.

During the two-day training, participants seized the opportunity for intensive exchange with the two experts on relevant parameters that have significant influence on electricity prices offered in solar tenders in Algeria, and used and adapted the model for specific exercises and case studies.