Financial model and financial plan templates in Excel for projects and businesses in the renewable energy sector. Financial plans can be used as a basis for a business plan and mostly focus on the financial feasibility of an investment in solar, wind, biogas and other renewable energies.
Advanced financial model in Excel format for project finance simulations applicable to wind power generation plants
All about Renewable Energy
Renewable energy, as we know, is energy that is collected from natural resources that replenish naturally. These energies could be sunlight, wind, rain, tides, waves, and geothermal heat. Renewable energies are often used to provide energy in four areas such as electricity generation, air, and water heating or cooling, transportation, and off-grid energy supply.
These renewable energy resources exist all over the world and mostly in wide geographical areas, compared to other energy sources which are limited to certain areas only. Due to the support of using renewable energy, there has been great results in energy security, climate change mitigation, and more economic benefits. Thus, this pushed the renewable energy sector to continuously grow strongly not just nowadays but also in the future.
The best thing about renewable energy projects is, it helped rural areas that have no access to other energy sources. It just so happens that these projects are usually large in size and the technologies used are perfect for rural areas and are still developing. Plus, the renewable energy systems of today are rapidly advancing to be more efficient and affordable, thus, this will lead to people not having to rely on other energy sources that are limited, e.g. coal, oil, etc.
Different Types of Renewable Energy
There are many types of renewable energy that exists. A scientific study once mentioned that these renewable energies are in some way reliant on sunlight. To explain better, the following are the different types of renewable energy:
Solar is a form of energy that relies on the power from the Sun. Specifically, the nuclear fusion power found from the core of the Sun. With the help of new technology, it became possible to collect it and convert it into different ways. Collected from using panels and other solar collectors, the solar energy is then used to power heating and cooling systems for homes, powering machines, etc.
Wind energy is collected from the movement of the atmosphere which is driven by the differences of temperature on the Earth’s surface when lit by sunlight. Basically, it is the direct result of differential heating of the Earth’s surface which leads to air moving about. It is then collected to be used to pump water or converted to generate electricity, but this usually requires an extensive area to even produce a significant amount of energy. This is why windmills are often spotted at rural areas with huge land coverage.
Derived from the word “hydro” which means water, this type of energy came from bodies of water precipitated by sunlight. By taking advantage of the gravitational potential of elevated water that was lifted from bodies of water by the sunlight, hydroelectric energy is then collected. Though nowadays, it is barely considered as a source of renewable energy due to some cases that leads to reservoirs which get filled up and needs expensive excavation to resume the operation. Hence, most of the existing hydroelectric dams are only available in developed locations.
These are sunlight energy contained in plants which are then extracted to use in many ways. This type of energy is commonly used all over the world such as a source of heating, fuel, etc., while some modern forms of biomass energy are methane generation and production of alcohol for fuel. It is considered as a renewable source of energy as long as one replaces the plant consumed, by planting. But it is very unfortunate that most people use the burning of plants or trees as a way to get the needed energy, which results to the release of copious amounts of carbon dioxide gases that is bad for the atmosphere, and also not replacing the trees that were cut or burnt down. Thus, making the use of biomass energy as harmful to the environment and disagreeable for forest preservers.
Hydrogen and Fuel Cells
These are energies that are not strictly considered as renewable but then again are very abundant in availability and also causes only very low in pollution. The energy is derived from hydrogen gas burned as a source of fuel for automobiles with the use of water as the combustion substance. The energy can also be used in fuel cells, which works like batteries, to power a motor. This is actually a very good source of energy which will help with pollution reduction in cities. It is clean and safe but, it requires abundant power to create energy. Thus, instead of fixing the pollution in the cities, they compromised with relocating the pollution to the power plants instead. But there are new promising ways to make the process possible, such as making use of solar power.
There are two forms of geothermal power, first is the energy left over from the natural accumulation on Earth and was augmented by heat from radioactive decay. Usually, geothermal power is found in certain places where the geothermal gradient is hot enough to be used as a source to generate electricity, but due to the limited number available on Earth and several technical problems, it limits its utility as a source of energy. Another form of geothermal energy is Earth energy. This is energy derived from the heat generated from the Earth. This is a result of storing the heat energy from the Earth’s surface. It is a clean and sustainable source of energy which is relatively used by people for heating on winter or cooling a building in summer, but this can’t be used to produce electricity.
Other forms of energy
These are energies derived from tides, big bodies of water such as the oceans, and other hot hydrogen fusions, that can be used to generate electricity. But most of these were not suitable for use due to the drawbacks it creates which could be potentially harmful to the environment and the people living in it.
Projects and Businesses in Renewable Energy Sector
When you hear Renewable Energy, what comes up in your mind? Isn’t it Solar energy from the sunlight, Wind energy from wind, Bioenergy from organic matter or biomass, Hydrogen from water, Geothermal energy from the earth’s internal heat and there’s also Ocean energy from the tides in the ocean. These energies are constantly replenished and will never run out, in short, they are renewable energy.
The allure of having infinite resources that one can harness to supply energy to millions of people is very strong. Hence, starting projects and businesses in renewable energy sector are developing, especially with the increase in number of population, the demand for power and the threat of dwindling resources is looming.
So, it’s no question that aside from the governments looking for ways to overcome this crisis, there are many private parties who wants to dive in and join in starting renewable energy projects or businesses. Usually, projects and businesses in renewable energy sector require a huge amount of funds. Thus, it is important to prepare a proper financial plan to manage the resources poured in and out of the projects or business. Also, to know the expected returns and whether the project or business will be financially feasible or not.
Financing Renewable Energy Projects
There has been a steady growth for Renewable energy projects nowadays, but the problem is, the demand for these projects are also continuously rising to help with developing areas to meet the needed sustainable developmental goals.
Starting renewable energy projects are not just like any projects, there is a critical need for a huge capital to shoulder all the needed expenses to even start one. Aside from financing renewable energy projects, in developing countries, there are many factors that can hinder the development and use of renewable energy. It could be lack of market transparency, lack of financing, ignorance about the project development, and lack of information on regulations, markets, and resource availability. Thus, resulting in only a few projects proposed and investors confused on which projects are profitable for them.
To venture in the renewable energy sector, one must do a feasibility study to ensure that you will have substantial information regarding the factors needed to not be hindered upon starting a renewable energy project. If financing renewable energy projects is your goal, as an investor, you will also need to do a lot of research or create an investment model to ensure that the project you’re investing will be financially feasible.
Financial Modeling – Renewable Energy Excel Spreadsheets
Are you planning to start a business in renewable energy sector or investing in renewable energy projects? Do you want to know how to ensure that your business will be financially feasible for the coming years? Are you in need of a proper valuation method to evaluate the projects or businesses in renewable energy sector, if it’s worth investing for? Or are you looking for a good financial model to showcase your business’s financial feasibility towards investors and venture capitalists for funding, and also banks for loans?
Here we have a list of financial model templates in Excel which are specifically designed for projects and businesses in Renewable Energy Sector. Why offer templates instead of creating one from scratch? Not all are experts in creating a financial model, plus it takes a lot of time to research and compile all you need to finish one. Efficiency is key in every business, so if you can save time for a lesser cost then that’s the best way to go about it, especially in this generation where working fast is preferable.
These renewable energy excel spreadsheets can be used as your basis for a business plan and mostly focus on the financial feasibility of an investment in solar, wind, biogas and other renewable energies. Giving you a more efficient way to calculate everything you need for your financial model. It is also very easy to download and edit, to be able to apply the figures of your company and the financial model will calculate everything for you. No need to be an expert in financing as the excel template will do the job for you.
No need to hesitate and try these specially made renewable energy excel spreadsheets. Let us provide you with an easy way to compute the profitability of your projects or business specifically made for projects and businesses in the renewable energy sector and is a perfect fit for your needs.
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