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Financial Model – Typical Content

1.0 Potential fuels data

1.1 Biomass fuels for WID-compliant plants
1.2 Biomass fuels for non-WID-compliant plants
1.3 Imported biomass fuels

2.0 Plant design data

2.1 Fuel consumption and data
2.2 Plant operating regime
2.3 Site area and principal building dimensions
2.4 Plant output – electrical and heat power and energy, CO2 emissions, solid residues
2.5 Utilities consumption – power, water, chemicals

3.0 Capital cost

3.1 Project development costs – from inception to financial close
3.2 Project implementation costs – from financial close to start-up

4.0 Operating and maintenance costs

4.1 Staff costs, including training
4.2 Utilities
4.3 Maintenance and repairs
4.4 Miscellaneous costs, e.g. rent, council tax, insurance, admin, EU ETS liability etc
4.5 Additional periodic costs, e.g. infrequent major overhauls

5.0 Capital payment schedule

5.1 Capital cost escalation
5.2 Operation in year of start-up
5.3 Staff costs in year of start-up

6.0 Loan repayments

6.1 Debt/equity ratio
6.2 Interest rates
6.3 Debt repayments

7.0 Biomass fuel cost

7.1 Or revenue if waste with a gate fee is used

8.0 Revenue from power

8.1 Avoided cost of purchased electricity
8.2 Revenue from electricity sold via the grid, including embedded and Triad benefits
8.3 Revenue from renewable energy benefits, including ROCs, LECs and REGOs
8.4 Revenue from by-products

9.0 Revenue from heat

9.1 Avoided cost of heating fuel
9.2 Revenue from heat sales

10.0 Cash flow statement for the project life, developing the

10.1 Net pre-finance pre-tax IRR (‘project IRR’)
10.2 Net post-finance pre-tax IRR
10.3 Net post-finance post-tax IRR (‘investment IRR’)

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