To consider economic viability and inform decisions to proceed with a renewable energy scheme, TNEI is able to model likely financial returns for various scales and forms of development. Using our experience of developments throughout the UK and insight into the current economic aspects of renewable energy generation, Discounted Cash Flow modelling is utilised to provide an indication of likely returns. Analysis of the modelling provides developers with an insight into the feasibility of a project from an early stage and can explore numerous scenarios to inform scheme design and the decision to proceed.
In undertaking an initial financial appraisal for a proposed development projected capital and lifetime operational costs are estimated using a combination of comparative and subjective estimating techniques. Benchmark data gathered from a range of previous project experience is used to inform this process and is tailored to each specific project or likely development scenario.
Using our insight into current income streams, including the Feed-in Tariff, Renewable Heat Incentive, Renewable Obligation Certificates and any savings made through onsite generation plus appreciation of all aspects of the financial inputs, TNEI can provide an estimate of likely returns on investment and payback periods. This is through discounted cash flow modelling tailored to individual project requirements and developer criteria. Examination and explanation of financial modelling includes sensitivity analysis to inform investment decisions with all required assumptions and areas of uncertainty highlighted.
While further more detailed financial assessment is likely to be required throughout the project, TNEI’s initial modelling coupled with our expertise across all aspects of the development process provides a valuable insight into the anticipated returns and investment risks associated with a renewable energy development.
For further information contact our Newcastle office.