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BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT
- It provides a ready-built framework for structuring cost-recovery tariffs on a dedicated electricity transmission and trading project, saving significant time compared to building a model from scratch.
- It links CAPEX, O&M, financing, and tax assumptions directly to tariff design and investor return metrics, so users can see how changes to any input flow through to IRR, NPV, DSCR, and payback.
- It supports multi-customer, multi-currency project structuring with transparent, auditable formulas across a full three-statement output, making it easier to test scenarios and justify tariff decisions to investors or regulators.
FINANCIAL MODELING EXCEL DESCRIPTION
Product Description – Cost Recovery Model: Electricity Trading (Dedicated Transmission Line)
What is this template for?
This is an Excel-based (.xlsm) financial modeling template built to evaluate the cost recovery, tariff structuring, and investment returns of a dedicated electricity transmission and trading project – such as a privately financed transmission line connecting a power generation source (e.g., a solar facility) to one or more offtake customers, outside of a standard distribution utility framework. It is designed for project developers, independent power producers, transmission line investors, and financial analysts who need to determine what tariff must be charged to customers in order to recover capital expenditure (CAPEX), operating costs (O&M), financing costs, and taxes, while still meeting a target return for equity and/or debt investors.
Main features and highlights
• A four-tab structure: Summary (financial overview, sources & uses of funds, tariff breakdown, and key return metrics), Control (a full three-statement output – income statement, balance sheet, cash flow – plus a debt service and demand/connections summary), Input (a single consolidated assumptions sheet), and Model Calculations (the underlying calculation engine).
• Detailed tariff build-up by component: generation PPA cost, transmission recovery charge, pass-through regulatory and grid fees (TUOS, DUOS, System Operator, Market Operator, VAT), and a separate trading margin line.
• A per-customer table for allocating distance, contracted capacity, load factor, and CAPEX across up to seven offtake customers.
• Full financing module covering equity/debt sourcing, cost of equity (built up from risk-free rate, beta, equity risk premium, and country risk premium), cost of debt, loan tenor, grace period, and repayment profile.
• Key outputs including project and equity IRR, NPV, payback period, minimum DSCR, and a built-in "Converge Equity IRR" toggle for circularity/iterative solving.
• Multi-currency support (USD/local currency) with configurable exchange-rate indexation.
How to work with this template
Users should populate the Input sheet first (timing, CAPEX, customer/load data, O&M, tariff, financing and macro assumptions); the Control, Summary, and Model Calculations sheets update automatically via formulas and linked cells. As supplied, most figures are set to zero or placeholder values and are intended to be replaced with project-specific data; some cells reference other workbook areas that should be checked once populated.
Why use this template?
It gives users a structured, ready-built framework for tariff and cost-recovery analysis rather than building a transmission/trading project finance model from scratch, saving significant modeling time while keeping the tariff, financing, and returns logic transparent and auditable.
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Source: Best Practices in Financial Modeling, Energy Industry Excel: Cost Recovery Financial Model: Electricity Trading Excel (XLSM) Spreadsheet, g63390012o24
