Description

Before we can accrue revenue or incur operating costs in a project, we need to build the underlying equipment that can generate the power. This is what we call capital expenditure or Capex, which we will explore in this module, covering build-up of construction costs for the generating assets, grid connections, and other capital expenditure. Using lookup functions to make capital expenditure timings flexible. Building in sensitivities for potential changes in costs. Calculating depreciation of the resulting capital assets.

Learning Objectives

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1. Determine the capital expenditure (CapEx) required for renewable energy projects.
2. Model CapEx for renewable energy projects.
3. Build up construction costs for generating assets.
4. Use lookup functions to make CapEx timings flexible.
5. Build in sensitivities for potential changes in costs.
6. Calculate depreciation of capital assets.