Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE credits
Companies, governments and NGOs are involved in designing and planning the future energy landscape of countries. Engineers and scientists contribute highly to this planning through bringing innovative, efficient and reliable technical solutions. Their know-how is used during the project development, the EPC (Engineering, Procurement and Construction) phase as well as during the Operation and Maintenance stage.
However, a successful energy plan depends on many other parameters such as the legal side, the political background of the country, the financing methods, the funding, the environmental aspects and the social acceptance.
This Master Thesis Project focuses on the financing side of energy projects, which is a key point to properly manage competitive and viable projects. The strong link between the financing and the political background will be shortly commented throughout the report.
In the first part of the report, the focus is put on the Project Finance. All along the report, the theoretical concepts will be illustrated with examples taken from the EDF EN projects, mainly in the Middle East and North African area. The second part deals with the risks associated to power projects. Commercial and political risks are listed and the main mitigation tools are explained. The third part of the report is dedicated to basic business models for energy projects. A simplified economical and financial model is described in detail and run for a wind farm project in a Moroccan-like environment. A sensitivity analysis (fourth part) concludes the report through analyzing: - the impact of technological choices on the internal return on investment will be studied - the impact of the financial parameters on the project structure.