Financial Analysis

Financial analysis shows whether a project pays for itself, what tariff it needs, and how sensitive that answer is to hydrology, cost overruns or tariff changes — for investors, lenders, donors and communities setting a tariff.

The work builds a cash-flow model over the life of the plant. Inputs are the capital cost (civil works, electromechanical equipment, transmission and distribution, development and contingency) and the operating cost — operator salaries, routine maintenance, a reserve for major overhauls, insurance and fees. Hydropower is almost entirely upfront cost with very low running cost, so the tariff must at least carry operation, maintenance and repairs for the plant to survive for decades. The model reports net present value, project and equity IRR against the cost of capital, payback, benefit-cost ratio, debt service coverage where the project is debt-financed, and the levelised cost of energy for comparison with diesel or grid alternatives — with sensitivity analysis on flow, cost, tariff and discount rate.

• Capital and operating cost build-up from the BoQ and supplier quotations
• Energy-sales and tariff / revenue modelling
• Cash-flow model: NPV, IRR, payback, benefit-cost, DSCR, cost per kWh
• Financing plan: grant, debt and equity mix
• Sensitivity analysis on flow, cost, tariff and discount rate

What you receive: a financial model with an analysis report: the assumptions, cash flows, NPV / IRR / payback / cost-per-kWh results, the required and sustainable tariff, a financing structure and sensitivity tables.

• Mini & Micro Hydropower Site Assessment →
• Preliminary Site Survey →
• Pre and Full Feasibility Study →
• Detailed Engineering Design (DED) & Bill of Quantity (BoQ) →
• All 16 Services →