Energy Academy
Level 3: Leadership & Strategy/Building the Investment Case
Level 312 lessons · 106 min

Building the Investment Case

Frame energy projects for finance directors: risk, hurdle rates, co-benefits and portfolio prioritisation.

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01Investment Case Fundamentals

  1. ▶NPV, IRR & Payback for Energy ProjectsTime value of money; comparing projects; hurdle rate (typical 10-20%).11 min
  2. ▶Risk & Sensitivity AnalysisEnergy price uncertainty, technical risk (will it work?), occupancy/production change.10 min
  3. ▶Co-Benefits & Non-Energy OutcomesHealth, productivity, resilience, brand value; quantifying soft benefits.10 min
  4. ▶Investment Basics CheckQuiz on NPV, risk, and co-benefits.5 min

02Building the Case

  1. ▶Energy Cost Baseline & ForecastCurrent consumption and cost; price escalation assumption (2-3% p.a. typical).10 min
  2. ▶Quantifying Project SavingsConservative estimates; M&V plan; avoiding overstatement (critical!).10 min
  3. ▶Financial Structures (CAPEX, OPEX, ESCO)On-balance vs off-balance options; ESCO trade-offs; blended cost of capital.10 min
  4. ▶Development CheckQuiz on baseline, savings, and financial structure.5 min

03Presenting the Case & Portfolio

  1. ▶Presentation Structure for FinanciersExecutive summary, risk/return profile, timeline, governance.10 min
  2. ▶Portfolio PrioritisationRanked projects by IRR, risk, strategic fit; bundling for cost-sharing.10 min
  3. ▶Getting Board/Investment Committee ApprovalEscalation path; key decision points; post-approval governance.10 min
  4. ▶Presentation CheckQuiz on case presentation and portfolio management.5 min