Course Overview

What is the energy finance?

Energy Finance is a vast field and can be defined as the study of finance that involves the production, supply and consumption of energy in societies. It involves the study of energy resources, their production cost, commodities and energy availability for future planning.

What is renewable energy finance?

The main purpose of energy finance is to devise an energy policy for the future after analysis and study of various energy resources available. The major factors involve cost of Energy, carbonization, cost of distribution of Energy, its availability around the year and consumption. The other factors involved in energy policy and economics are energy conservation, taxation, long-term development plan, and various long and medium-term energy policies. Energy economics is a crucial subject due to its direct relation to the progress and development of any company. Poor energy finance management can cause cost overburden, expensive product and environmental hazards.

This Zoe training on Energy Finance will provide in-depth knowledge and short experience on energy finance using different case studies and real-time events. The skills and experience gained will help you assume higher roles and responsibilities and provide required career growth and progression capabilities. Since energy finance is a global subject that needs to be addressed by most such organizations, gaining knowledge of international practices and concepts will provide you opportunities outside organisation, thereby increasing avenues and scope for growth.

Course Objectives

The main objective of the Energy Finance training program is to equip professionals with the following—

• The processes, systems for energy conversion and distribution
• Understanding the economic rationale behind energy exploration, development, capital budgeting, option pricing and risk management
• Understanding the deep relation of energy and environmental problems
• Understanding various energy resources their advantages and disadvantages and tier role in modern society
• Interrelationships between use of Energy, progress in industrial and environmental issues
• Microeconomic Fundamentals of Energy Finance
• Understanding basic techniques for the valuation of forwards, futures, swaps, and vanilla options (calls and puts)
• Recognize the facts of risk management with respect to energy risk
• The necessary skills and experience to train other professionals regarding best practices of energy finance
• The experience and exposure to address relevant aspects of climate change, energy policy, etc.
• The overall skill set and capabilities to effectively manage the energy finance and have potential and new opportunities for career growth and development

Training Methodology

Zoe Talent Solutions training on energy finance is framed with scope for customization as per the academic and/or professional backgrounds of the training audience of each batch. This involves a thorough review of course content before starting of each training session. An experienced professional from the related domain delivers training using detailed audio-visual live presentations. The trainer used two-way interaction teaching format that encourages participation using group work and projects. Case studies and experiential learning are some approaches adopted in training.  This innovative training approach was conceptualized by Zoe Talent Solutions mostly used in all their courses.

Organisational Benefits

The professionals taking this course with their organisations will gain the following benefits:

• Better management of Energy finance
• Better understanding of new opportunities for financing Energy projects
• Assessment and mitigation in detail by expert analysis
• Better prediction and assessment of energy demand to increase profits, thereby contributing to organisational profit and growth.
• Higher client satisfaction because of a good balance between supply and demand, preventing delay in delivery to the customer
• Application and execution of forward-looking ideas, concepts and models to increase energy productivity within the company
• Regular training of employees on best practices and advancements in the field of energy finance enhance company productivity

Personal Benefits

Professionals undertaking this Energy finance training course will get the following benefits:

• Understanding of all critical aspects of energy finance
• Improved analytical skills to assess energy demand and supply parameters
• Increased knowledge, confidence and skillset to train other employees for best practices
• Understanding and knowledge of modern techniques related to energy finance, enabling trainees to assume higher responsibilities in energy finance in any organisation
• Better understanding and analytical as well as strategic skills to work with different systems and choose appropriate models for managing energy finance
• Ability to predict risks and make necessary arrangements to mitigate the damaging impact of these on the organisation
• Boosted skillset and abilities to drive supply, consumption and distribution
• A sense of pride in contribution organisation growth through effective energy finance management strategies

Who Should Attend?

• Executives and managers responsible for managing energy finance
• Policymakers who create organisational energy policies
• Senior managers and directors of an organization who need to understand energy finance and its potential in detail
• Financial analysts and officers involved in the financial aspects of energy finance
• Strategists and analysts responsible for performing detailed and accurate energy demand and supply analyses
• Employers working in interested in global energy finance

Course Outline

Module-1: ENERGY AND ITS TYPES

• Energy, Renewable energy project finance
• Basics and Fundamentals: Power, Coal, Oil and Gas
• Nuclear power
• Biofuel production
• Technological and physical constraints of Energy
• Project Finance in specific Energy Sectors
• Transmission lines

Module-2: ENERGY AS TRADE

• Energy Infrastructures Financing
• Contracts specific to Energy
• Trading of energy and commodity markets
• Financial and physical carbon markets

Module-3: SUSTAINABLE CLIMATIC GOAL AND ENERGY

• Current Climate changing Issues
• Development of Green techs in Energy
• Climatic goals and policies
• Strategies for Green technology development

Module-4: STRATEGIES IN ENERGY

• Strategies in the energy sector
• Energy in the corporate sector
• Energy-based sensitive Industries
• Issues, government energy policies

Module-5: ENERGY FINANCING

• Principles of Non-recourse Finance
• Market of project finance
• The difference between energy project finance and financing projects
• The principles of project finance

Module-6: ENERGY PROJECTS FINANCING

• Energy Products and Projects
• Commodities & markets
• Project finance of power generation, liquid natural gas (LNG) terminals, transmission lines, pipelines, refineries, primary and secondary oil & gas exploration.

Module-7: BUSINESS WITH ENERGY

• Business Models in Energy sectors
• Revenues: production profiles, contract types, off-take agreements
• Pricing: auctions, markets, fixed;
• Operational costs: fixed, variable, working capital.

Module-8: PROJECT FUNDING AND RESOURCES REQUIRED

• Sources and Instruments of Finance
• Funding: Over the lifecycle of a project
• Classes of funding
• Fundamentals of Financing instruments
• Islamic financing structures
• Repayment methods, interest calculations, credit ratios

Module-9: CASH FLOW MANAGEMENT AND INVESTMENT

• Cash Flow Model
• How to analyse and structure projects
• Sensitivity & scenario analytics
• Debt sizing
• Credit decision, investment decisions
• Re-financing debt, secondary equity sale

Module-10: RISK ASSESSMENT AND LIQUIDITY

• Risk Assessment & Strategy
• Identification of risks, including credit and market interest
• Liquidity, supply, currency, political issues in Energy Finance
• Discussion: Structures to allocate, finance or mitigate risk
• Impact on financial model

Module-11: CONTRACTS OF ENERGY PROJECTS

• Contractual and Legal Framework of energy projects
• Crucial contracts including loan agreements and project implementation agreements
• Energy projects contract, o&m contract, power purchase agreement, corporate documentation, land agreements and bond documentation
• Bankruptcy of debt or equity providers
• Insurance
• Anti-corruption and anti-money laundering