Geothermal Energy - Project Finance Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. Provides forecast and profitability analysis of a development and operating scenario for a Geothermal Energy Plant.

ENERGY INDUSTRY EXCEL DESCRIPTION

This product (Geothermal Energy - Project Finance Model) is an Excel template (XLSX), which you can download immediately upon purchase.

A geothermal energy plant generates electricity by harnessing heat from beneath the Earth's surface. It extracts steam or hot water from underground reservoirs to drive turbines connected to generators. The process produces reliable, low-emission power and operates continuously, unlike solar or wind. Geothermal plants are typically located in geologically active areas and offer a sustainable, long-term energy solution with minimal environmental impact.

This Financial model presents a development and operations scenario of a Geothermal Energy Plant covering exploration and drilling costs, plant construction, operating expenses, energy output, and revenue projections. The model supports project feasibility, cash flow forecasting, and investment analysis, with dynamic inputs for resource capacity, tariff structures, and financing options. It provides a robust framework to assess long-term viability and support sustainable energy development.

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

•  General Setup & Acquisition Inputs
Production and Operations-related inputs, including Project Timing, Production Assumptions (Generator Capacity, Net Capacity Factor, Capacity to Thermal Potential Ratio, Thermal Resource Degradation), Revenue (PPA Terms and Tarriffs), Operating Expenses, Capital Expenditures, Financing through Equity, Debt, and Government Grants, and Tax Benefits (ITC or Tax Free period)

•  Development Budget
Plant Development Assumptions including Land costs, Hard costs, Soft costs, Development Timing, and Development Cash Flow distribution (Straight-line, S-Curve).

•  Debt Schedule
Loan amortization Schedule of project's debt including an optional moratorium and interest-only (IO) period.

•  Monthly & Quarterly Cash Flows
These 2 reports present all the operating cash flows of the project over monthly and quarterly periods. It allows users to control the timing and how the cash flows over that time.

•  Annual Cash Flow
A roll-up of the monthly cash flows into annual periods from Plant Development to Net Cash Flow after taxes. It includes also calculation of Levelized Cost of Energy (LCOE), and Debt Service Reserves.

•  Performance Reports
The model includes KPIs and Perfomance dashboard reports assisting users to monitor project's operations and profitability.

•  Project Returns
Report presenting project unlevered and levered returns (Pre-Tax & After-Tax IRR, MOIC, Cash Outflows, Inflows and Profits)

•  Investors' Returns Waterfall
A 3-tier IRR hurdle waterfall model to distribute proceeds between investors. The report provides inputs for up to 4 different LPs with different equity contribution percentages and up to 4 different GPs with different equity contributions and equity share percentages. The first tier distributes cash flow to the partners until the LPs has achieved some defined preferred return and received a full return of capital. Assuming the preferred return hurdle is hit in tier one, cash flow is distributed in tiers two and three based on a defined promote structure and hurdle rates as outlined by the user.

•  Project Executive Summary:

A high-level summary of the project's key data, including:
– Key Project Metrics (Project Timing, Production Metrics, Payback Period, LCOE, Free & Clear Return Ratio, Cash-on-Cash Ratio, DSCR)
– Uses & Sources of Cash
– Operations Summary (Revenue, Net Operating Income, Net Cash Flow)
– Project Level Return Metrics (Unlevered & Levered)
– Partnership (LP's & GP's) Level Returns Summary (IRR, MOIC, Cash Outflows, Cash Inflows, Profit)
– Business Performance Dashboard

Detailed instructions for the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you, however, experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.

Source: Best Practices in Energy Industry, Integrated Financial Model Excel: Geothermal Energy - Project Finance Model Excel (XLSX) Spreadsheet, Profit Vision