For financing institutions
Bankability assessment and the calibration of financing for energy projects.
For Whom
Banks, financing institutions, private debt funds.
Why
To assess whether the project will actually service the debt and on what terms it can be safely financed.
What You Get
An independent assessment of CFADS, DSCR and project resilience, supporting the credit assessment process and the calibration of financing parameters.
Revenue logic andcalibration of the sponsor's model
We reproduce the sponsor's strategy in our model in order to verify whether the assumed revenue sources, the asset's operating profile and the operational parameters are realistic in market and technical conditions.
We reproduce the sponsor's strategy in our model to verify whether the assumed revenue sources, the asset's operating profile and operational parameters are realistic in market and technical conditions.
We overlay our own scenario logic and operational constraints to show how the assumptions translate into actual cash flows, rather than into a model built on optimistic assumptions.
We overlay our own scenario logic and operational constraints to show how assumptions translate into actual cash flows, rather than a model based on optimistic assumptions.
EFFECT FOR THE FINANCIER
A parallel model that makes it possible to compare the sponsor's assumptions with an independent assessment of the project's economics and risk.
Degradation physics andCAPEX dynamics
Financial valuation does not exist without the electrochemistry of cells and the phenomena that take place during storage operation.
Financial valuation does not exist without cell electrochemistry and phenomena occurring during storage operation.
Our Sentinel Degradation Engine (SDE) model precisely maps the generated trading strategy onto non-linear cell ageing models, taking the manufacturer's warranty into account. We determine the loss of usable capacity (SoH) and the optimal schedule of replacement spending (Augmentation CAPEX) so as to meet the requirements of signed contracts, e.g. capacity contracts.
Our Sentinel Degradation Engine (SDE) maps the generated trading strategy onto non-linear cell ageing models, taking the manufacturer's warranty into account. We determine the loss of usable capacity (SoH) and the optimal schedule of replacement spending (Augmentation CAPEX), so as to meet signed contract requirements, e.g. capacity contracts.
EFFECT FOR THE FINANCIER
A better understanding of how the physics of the asset affects project value and future replacement spending.
Model resilience andstress scenarios
We analyse the project's behaviour at different debt levels, showing the impact of the financing structure on CFADS, DSCR and the project's resilience to downside scenarios.
On the basis of scenarios and stress tests we identify constraints on the debt level and provide a basis for calibrating covenants, reserves and financing parameters.
EFFECT FOR THE FINANCIER
A basis for determining the debt level, covenants and reserves in the credit process.
Financing structure anddebt sizing
We analyse the project's behaviour at different debt levels to show the impact of debt on CFADS, DSCR and the resilience of the financing structure.
We indicate the calibration of covenants, reserves and financing parameters on the basis of the most constraining stress tests.
EFFECT FOR THE FINANCIER
A transparent basis for setting the debt level in line with the financier's policy.
What the financing institution receives
Verification of the sponsor's model
An independent assessment of the financial model's assumptions and their impact on project bankability.
Debt service capacity assessment
A clear analysis of CFADS, DSCR and the stability of cash flows under the credit scenario.
Project resilience
Identification of key risks and of the scenarios and stress tests that mark the limits of the project's debt service capacity.
Debt structure
A basis for setting the safe debt level, covenants and required reserves.
The financier receives coherent material for credit assessment of the project, its resilience to risk and the parameters of the financing structure.The financier receives a coherent body of material for the credit assessment of the project, its resilience to risk and the parameters of the financing structure.
See who stands behind the models and analysis.See who stands behind the models and the analysis.
Get to know the team and the Envalis approach.Get to know the team and the Envalis approach.
Discover Envalis