Client Context
The client was developing a portfolio of energy projects across different structures, including standalone BESS and hybrid systems. They required a model that could be used internally as well as for investor and lender discussions.
Problem & Objective
The key challenge was structuring a model that could accurately reflect multiple revenue streams, degradation over asset life, and different operating scenarios. Existing models lacked flexibility and did not align with how investors and lenders evaluate energy assets — particularly around DSCR and IRR analysis.
Approach
We developed a comprehensive project finance model structured around project-level cash flows and consolidated fund-level outputs.
- Revenue build-up across multiple streams — merchant, ancillary services, and capacity payments
- Degradation assumptions modeled across the full asset life
- Scenario and sensitivity analysis covering key revenue and cost drivers
- DSCR and IRR analysis structured to align with lender and investor review requirements
- Clear separation of assumptions and outputs to support auditability
Outcome
The final model provided a clear view of project economics under different scenarios and was used for both internal decision-making and external investor and lender discussions.
- Enabled the client to evaluate project viability under different configurations
- Provided structured outputs aligned with how lenders review energy assets
- Supported investor conversations with a defensible, well-documented model