CLIENT: Electricity Transmission Operator

An electricity transmission operator is launching a new project that will require a significant capex to move electricity from a low-cost to a high-cost jurisdiction. They approached Sapling to build a financial model to assist with (a) pricing the transmission, and (b) obtaining financing

Smart grid concept.
Key Insights

We built a project financing model with detailed calculations of the debt/equity split, interest during construction, etc. The model has monthly forecasting and uses a simple macro to ensure proper calculation

The model is currently being used to evaluate different construction and pricing scenarios. Our client is in the process of signing up customers to ensure some certainty for funders

The model shows that a reasonable debt/equity split is likely to generate a satisfactory IRR of over the next 30 years given reasonable pricing. The project has support of local governments and significant interest from industrial users

PROJECT PROFITABILITY OVER TIME
graph and bar chart
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