Energy Transition Finance

The energy industry is undergoing substantial changes as it navigates an increasingly complex and dynamic landscape. Long-term structural shifts – such as the growing urgency of addressing climate change, the rising importance of climate risk, and the global push for decarbonization – are driving a fundamental transition toward renewable energy sources. At the same time, short-term disruptions, including heightened volatility in energy markets and shifts in the global political and regulatory environment, are adding further complexity to strategic decision-making within the sector.

This 2-day program is designed primarily for actors involved in energy finance, either on the demand side, e.g. utilities and energy buyers, or on the supply side, e.g. oil and gas companies and renewable energy producers.

The program is also useful to actors in energy-sensitive industries and in the public sector.

The focus of this program is on finance, and it is designed for professionals in both public and private sectors, including project finance specialists, project developers, private investors, and consultants. Participants should be familiar with the basic valuation concepts, such as definition of free cash flows, the costs of capital, and the Discounted Cash Flow (DCF) methodology.

How you will benefit

• Gain an understanding of valuation tools needed to valuate energy projects
• Explore the key value drivers in highly volatile energy markets
• Investigate the challenges of implementing project finance in energy markets
• Develop a framework for assessing climate risk
• Assess the financial impact of climate risk
  
  

Day 1| Morning | Renewables and Energy Finance Metrics

• The energy finance landscape
• Standard Energy Valuation Metrics: LCOE, LFC, LVC, LCOS, LACE, …
• The use and misuse of LCOE
• Pitfalls in valuation of renewable energy
• A value-based approach to energy projects valuations.

Day 1 | Afternoon | Financing Energy Projects

• Project Finance for Energy Projects
• Debt structure in Project Finance
• Financing construction and operations
• The role of Public-Private Partnerships (P3)

Day 2 | Morning | Challenges and Pitfalls in Energy Projects Valuation

• Does the financing of renewables require a rethinking of valuation?
• The limits of the traditional Discounted Cash Flow (DCF)
• What are the value drivers in highly volatile energy markets?
• Real life case study in the energy market
  
  

Day 2 | Afternoon | Volatility, Energy Projects Valuation, and Financial Markets

• Valuation in highly volatile markets
• The financial impact of climate risk: Is there a climate risk premium?
• Is climate risk affecting the cost of capital, and how?
• The role of ESG, green bonds, and green investing
• Upcoming challenges in the energy market
  
  

Program preparation

There is some preparatory work required for this program. Pre-reading materials will be made available on a password protected webpage a few weeks prior to the program.