As countries accelerate their transition toward clean and reliable energy, run-of-river hydropower projects are emerging as a critical backbone for long-term, low-carbon electricity generation—especially in hilly and high-head terrains across emerging markets.

At Fin-Wiser Advisory, we specialize in developing robust financial models and business plans to help investors, operators, and enterprises navigate the complexities of setting up and operating a Hydro Power Plant.

If you plan to invest in or scale a Hydro Power Plant, our business plan model provides a data-driven approach to maximize returns and minimize risks. Let’s connect to discuss how we can support your project!

The Model includes assumptions related to:

1. Plant Capex, Electro Mechanical Equipment, Transmission Infrastructure, Environmental and Social, and Developer’s Fee
2. Revenue Framework – Long-term PPA modeling, Capacity payments, Ancillary services, Carbon credits (tCO₂-based), and Other Revenue
3. Cost Structure – Fixed cost (divided into 4 sub heads such as staff, Routine Maintenance, Insurance, Admin/Overhead), Variable O&M Cost, Royalty/Water fee to Local Government, Major Maintenance / Overhauls, and Other SPV Level Cost
4. Flexible Funding Profile – Cash equity, Bridge Loan, Bank Debt, DSRA, and Bank overdraft
5. Variable Grant Funding Structure – VGF Grant as a % of Capex, Milestone-based VGF, and Revenue Gap VGF
6. Working Capital Assumptions related to accounts receivable and payables
7. Straight Line Depreciation
8. Annuity, Sculpted Debt, and Even Principal Repayment options
9. Inflation and Indexation
10. VAT during the construction and operations phase
11. Decommissioning cost and reserve, if required

Sensitivity & Scenario Analysis

Built-in sensitivity analysis allows users to assess downside and upside risks across key variables such as:

1. Tariff variations
2. CAPEX overruns
3. Hydrology shortfall
4. Interest rate movements

Information Memorandum (IM)

An Information Memorandum (IM) is a comprehensive document designed to present a clear and structured overview of a business, project, or investment opportunity. It provides potential investors and stakeholders with key insights into the project’s financial performance, market landscape, growth prospects, and associated risks, enabling informed decision-making.

Information Memorandums are commonly used in capital raising, mergers, acquisitions, and project financing transactions. The financial sections of this IM are designed to be populated directly from the accompanying financial model, ensuring consistency, transparency, and analytical rigor.

Disclaimer: This Information Memorandum has been prepared solely for illustrative and educational purposes. The information contained herein, including financial projections, market data, assumptions, and analyses, is hypothetical in nature and does not represent any actual project, company, or investment opportunity. Nothing in this document should be construed as investment advice, an offer, or a solicitation to invest, nor as a representation of factual or future business performance.

Any information, assumptions, or financial outputs presented in this Information Memorandum must be reviewed, revised, and customized to reflect the specifics of the actual project under consideration. Users are advised to conduct independent analysis and due diligence before relying on the contents of this document for any commercial, financial, or investment decisions.

Model Output includes:

1. Project IRR & NPV
2. Equity IRR & NPV
3. Minimum and Average DSCR
4. LLCR and PLCR
5. Equity Payback Period
6. Cash Waterfall
7. Debt Service Profile
8. Integrated Financial Statements
9. Fully Integrated Dashboard

Model Package includes:

1. Excel-based financial model (Excel binary format, i.e., xlsb)
2. Macro Word Document – This includes the VBA Code used in the model for the user’s reference
3. Information Memorandum Template in PPT Format

Why Fin-wiser’s Financial Model Template:

1. Our model allows greater flexibility in terms of deciding upon the forecast period length. Users can choose from Monthly, Quarterly, semi-annual,l or Annual forecast period length. This provides more detailed data for Analysis.
2. The model is divided into two phases, i.e., Construction and Operations. The user has the flexibility to decide upon each period length individually and can also choose to populate each model phase on a monthly, quarterly, semi-annual, or annual basis.
3. All revenue and cost assumptions can be input into 3 scenarios. This helps the user to assess the impact of multiple business scenarios in one model. This can be operated simply with a click of a button.
4. The Debt funding drawdown has 3 scenarios that can help users assess the impact on the IRR and make the best possible negotiations with the financial institutions.
5. The debt repayment has been profiled with 3 scenarios, i.e., Annuity payment, Even Principal Payment, and Debt sculpted repayment. You can change the scenario with a click of a button and assess the impact on IRR.
6. The model is built with Financial Modeling Best Practice and has clearly defined input, calculations, output cells, and tabs to help even a rookie Excel user operate the model efficiently.
7. Our Models are thoroughly reviewed and quality-checked for Arithmetic and Logical flow

Technical Specifications:

1. The model uses Macros (VBA), especially to consider the interest during the construction phase in the Uses of Funds Table. To run the model optimally, keep macros enabled. In case you do not like Macros, you could manually disable or remove the Macros, and you will have to rework the model’s logic to be used without Macros, but it is not recommended by the author.
2. The model is built using the Microsoft Excel 2019 version for Windows. Please note that on certain Mac laptops or MS Excel before 2007, Excel with Macros can slow down your computer if your PC does not have enough processing power.
3. We advise you not to delete or insert rows and columns into the model if you are unaware of the model structure, as it can distort model functioning. If you need assistance with customizing the model template, the author is more than willing to help you. Simply contact us at contact@fin-wiser.com and send your model template as well as specifications. We will then get back to you with a quotation for the customization service(billable hours & completion date).
4. The model uses Cell Styles