IC Cases: Invest / Bid / Structure

You are evaluating a greenfield solar project and preparing an IC recommendation.

Project

• •Capacity: 100 MW
• •COD: 1 year from now (construction period)
• •PPA tenor: 15 years from COD
• •PPA price: €65/MWh fixed (assume no escalation)
• •Expected generation: 200 GWh/year
• •Opex: €3M/year
• •Taxes and working capital: ignore for simplicity

Cash Flow

• •Treat CFADS as: CFADS = Revenue - Opex
• •Revenue = Price × Generation

Financing

• •Senior debt is sized to minimum DSCR = 1.30x
• •Interest rate: 6% fixed
• •Debt tenor: 14 years from COD
• •Assume level annual debt service for sizing (annuity)

Equity Bid Exercise

• •Separately, assume equity receives:
  • •€3M/year for 15 years (Years 1–15 from COD)
  • •Plus €40M net equity proceeds at the end of Year 15
• •Target equity IRR for the bid: 12%

Answer the linked questions below.