Financing and Economic Viability

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The course will focus on economic efficiency and financeability as a decision-making basis for investments in energy systems.

• Basic concepts of financial mathematics: time value of money, formation of cash values, payment series, (imputed) interest rates, inflation, (weighted) capital costs, equity and debt capital.
• Static and dynamic methods of investment calculation: present value, interest calculation, annuity, amortization period
• Risks of investment decisions and their impact on profitability and financial viability
• Production costs of energy from different energy technologies and energy sources
• Financing of energy projects and (energy) companies: Internal and external financing as well as equity and debt financing.
• Application of terms and procedures to energy investment projects with practical relevance.

At the end of the course, students will be able to apply general methods for assessing economic viability, financeability and investment risks to energy investment projects. The students

• know the basic concepts of financial mathematics and thus describe and discuss the interactions of investment, financing, risk and profitability.
• are familiar with static and dynamic methods of profitability calculation and can apply them to typical practical examples from the energy industry.
• can calculate and compare the production costs of energy.
• are familiar with typical forms of corporate financing. Can derive advantages and disadvantages and apply them to energy projects.

• Lecture with integrated exercises
• Presentation and discussion of practical examples

• Written examination (80%)
• Exercises (20%)

For a positive grade, a minimum of 50% of the possible points must be achieved across all parts of the examination.

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• Becker, Hans Paul (2016): Investition und Finanzierung: Grundlagen der betrieblichen Finanzwirtschaft. 7., aktualisierte Auflage. Wiesbaden: Springer Gabler.
• Volkart, Rudolf u.a. (2014): Corporate Finance: Grundlagen von Finanzierung und Investition. 6. überarbeitete und aktualisierte Auflage. Zürich: Versus.
• Konstantin, Panos (2017): Praxisbuch Energiewirtschaft: Energieumwandlung, -transport und -beschaffung, Übertragungsnetzausbau und Kernenergieausstieg. 4., aktualisierte Auflage. Berlin: Springer Vieweg.
• Herbes, Carsten (Hrsg.) (2015): Handbuch Finanzierung von Erneuerbare-Energien-Projekten. Konstanz: UVK-Verlagsgesellschaft.

Presence Course