Name: Geothermal Energy Feasibility Model Template
Brand: eFinancialModels
SKU: 253665
Price: 99.95 USD
Availability: InStock
Rating: 4.00 (1 reviews)

Geothermal Energy Feasibility Model Template

Financial Model, Renewable Energy

Cash Flow Analysis, Cash Flow Projections, Debt Schedule, Debt Service Coverage, Dividends, Excel, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Fundraising, Investor Cash Flows, IRR (Internal Rate of Return), Payback Period, Startup Financial Models, Three Statement Model | Three Financial Statements, Uses and Sources of Funds

The model forecasts the electricity generation capacity, the size of the thermal resource potential, and any eventual degression over time. The model also foresees two drilling upgrades to increase the Thermal Resource potential once the generator can no longer run at full capacity.

The model focuses on building a comprehensive three statement model forecast and calculating the project’s metrics, such as IRR and Payback Period, on an unlevered and levered basis. The spreadsheet template forecasts all relevant financial ratios, such as, e.g., Debt Service Coverage and Debt/EBITDA ratio relevant to banks.

The Excel spreadsheet template also includes a worksheet to calculate the possible returns for a developer who invests in the project and might want to sell the built geothermal plant to a buy-and-hold investor once the plant is built and de-risked.

The video below explains the type of financial analysis that can be performed with this Excel spreadsheet model template.

The model uses a yearly forecast over a period of 30 years, and the financial model template includes the following:

Assumption Sheet, which contains all relevant assumptions, such as
- General assumptions such as units, inflation rates, income tax rate, Net Working Capital assumptions, depreciation periods
- Project capacity, size of Thermal Resources, and annual degression factors
- Project Lifetime assumptions
- Pricing assumptions assume the electricity can either be sold at market or at off-take prices.
- CAPEX assumptions for categories such as Exploration, Drilling, Land, and Plant cost. The CAPEX plan also foresees up to two drilling upgrades to increase the Thermal Resource Potential
- Uses and Sources of Funds Table
- Debt financing assumptions, including Loan to Value ratios (LTV), interest rates, debt repayment schedule
- Dividend assumptions
- Operating cost assumptions
- Decommissioning costs and end-of-life proceeds
Executive Summary Sheet
- Financial Summary
- Project Metrics
- Uses and Sources of Funds Overview
Developer Metrics Sheet
- Assumptions to prepare an investment case for a developer, including holding period and exit valuation
- Financial Metrics for the Developer
- Financial Metrics for a future potential buyer (the party the developer will exit and sell the project to).
Operational Model
- Project plan to plan the timing of exploration, drilling, construction, and production ramp-up plan
- Detailed forecast of capacity and thermal resource potential (including additional drillings) and annual electricity production
- Pricing forecast by taking into account the forecasted inflation rates
- Forecast of all operating costs
Financial Forecast
- Income Statement
- Balance Sheet
- Cash Forecast
Developer Financials
- Cash Flow forecast for up to 5 classes of investors at the developer level
- Cash Flow forecast for a future buyer
- Calculation of all financial metrics for each party
Terms & Abbreviations sheet
Table of Content sheet

This financial model template was specifically defined to analyze new Geothermal projects that will produce renewable energy in the form of electricity. The Excel spreadsheet template allows the analysis of a project from all different angles (operations, bank, investors, developers, future buyers), and changing the assumptions allows for running different scenarios.

The Excel model spreadsheet template is available as a Free PDF Preview and as a fully editable Excel version. The latest model version is 1.83

File types:

Full Excel Model – .xlsx
PDF Demo Preview – .pdf

This template is also included in the Renewable Energy Financial Model Bundle. If you want to purchase templates related to the Renewable Energy Industry, you can get the Bundle instead.

Reviews

Great start, but needs some updates

By Peter on May 30, 2023 at 21:31

This is a great model. But it lacks in subsidies (tax incentives) and PPT similar to:
https://www.efinancialmodels.com/downloads/solar-energy-financial-model/

This will be a five star model when updated.

Thank you for your feedback.

775 of 1631 people found this review helpful.

By eFinancialModels Team on June 5, 2023 at 08:36

Tax incentives should not change much in the feasibility conclusion for a Geothermal project. Tax credits offer mostly additional incentives to make the project more attractive. Sure at one point we can add a more sophisticated tax credit calculation. For the moment you can simply overwrite income tax to zero for the years you expect to use tax credits. Best is always if your project is feasible without having to use tax credits to get there.

773 of 1517 people found this review helpful.

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