Comparable Profitability Calculation of Renewable Energy Projects

20/12/2021 | Oliver Stock, greenmatch AG

The professional profitability calculation of a renewable energy project often involves a great deal of effort, regardless of the technology involved. A multitude of variables must be taken into account and readily provide for tailor-made financial models for each project. This often makes a reliable comparison of different projects impossible.

Standardisation despite a diversified investment strategy

One might think that different technologies also require fundamentally different calculations at the same time. Different project phases and different country profiles are often part of a diversified investment strategy and theoretically go hand in hand with even less standardisability. But is this true? The fact is that with a diversified growth strategy, the complexity of profitability calculations increases. But it is certainly possible to take into account all the specifics, from the technology, to the project phase, to the respective country profile (with its various peculiarities such as taxes) in a uniform financial model.

But how can I evaluate the economic viability of my projects with a comparable basic framework? The prerequisites for this are the following 3 points:

  1. The calculation method must always remain the same and no adjustments may be made to the formulae.

  2. Object-based calculations make it possible to add or remove different positions in a modular way without having to make adjustments to the calculations.

  3. Especially in today's world, it is indispensable that financial models are maintained independently of persons and can be transparently traced at any time.

A uniform basic framework of the financial model offers a variety of other advantages:

  • It offers the possibility to compare projects of different categories and to identify the really interesting ones independently of individual factors.

  • A uniform financial model also provides the basis for meaningful financial performance monitoring for all projects. This in turn enables the asset manager to set priorities and intervene in time in the weakest projects.

Are you planning to invest in renewable energy projects or would you like to manage your existing portfolio financially in a professional manner? Then contact us now and secure your personal trial account to greenmatch's unified financial model!:

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About greenmatch

greenmatch is the leading web-based investment application for renewable energies. The highly flexible application models the complete financial project lifecycle of your wind, photovoltaic, hydro and biomass projects and optimizes your workflow. Its collaborative and integrative approach allows projects to be analyzed and executed more efficiently, comprehensibly and reliably. Our solutions empower project developers, investors and banks in making reliable decisions and in increasing the success of their transactions. greenmatch is an innovative model to limited traditional spreadsheet applications.

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