Anyone operating in the renewable energy sector needs a reliable overview of the financial potential of their project. Pirmin Affolter, project finance specialist at greenmatch, shows where the strengths and weaknesses of conventional financial modeling with Excel lie and what advantages greenmatch’s web-based financial software offers.
Excel as a challenge
The most common software for financial modeling is Excel. The programme is widely used and offers a variety of ways to calculate the profitability of a project. But adaptability can also quickly become a problem: on the one hand, because of complex formulas and references that are difficult to understand, adapt and error-prone; on the other hand, because different projects are based on different calculation models and therefore comparisons are hardly possible. The permanent adaptation of the existing calculation basis thus becomes a Herculean task. It is inefficient and often unnecessarily prolongs the transaction process.
greenmatch’s financial software provides a remedy
In order to make financial modeling in the renewable sector more efficient, greenmatch has developed a web application that enables standardised profitability calculations. The tool, which has been tested by Ernst & Young, is based on a fixed, error-free calculation model. Thanks to its object-based orientation and the inclusion of various calculation parameters, it is nevertheless customisable and flexible. “This is precisely the advantage of the greenmatch application,” says Affolter. “It offers project developers, investors, banks and consultants the possibility to structure, trade and monitor investments – even with extremely complex project structures. This creates a good overview and, above all, opportunities for comparison, regardless of the project status, the specific technology or the global location.
Efficient liquidity planning
The possibilities for comparison play an important role, especially in the area of asset management. The smallest changes in assumptions can have major consequences. Monitoring the financial performance and liquidity of assets are therefore in focus. With the greenmatch software, projects can be financially tracked in operation by enriching the original transaction plan with current figures from accounting. Thanks to this updated plan, deviations between target and actual can be highlighted, future gaps in liquidity can be identified and appropriate measures can be taken.
Software with a future
greenmatch is constantly developing the programme further. “The current focus is on integrating asset controlling into greenmatch valuation itself, so that the current figures are always directly visible there and adjustments can be made if necessary. These innovations will be available in the next few weeks,” Affolter announces.
The recording of the webinar from January 20th 2022 can be found here.
