Inputs

Sales Components:

Sales
- Interaction Group
- Driver
- Value
- Bounds (Floor, Cap)
- Start
- Model
- End
- Production Units
- Indexations
- Methods of Payment
Price Interaction
- Price Interaction

Calculations

Profit & Loss statement

The Profit & Loss statement depends on the selected Driver and the Value input.

For the Feed-in-Tarrif, Market Price and PPA Pay-as-Produced, the following formula defines the payout, where Driver stands as example for "Net Production" or "Power", and the Value is the market price or fixed tariff that is paid.

t < Start	t >= Start and t < End	t >= End
0	Sales.Profit & Loss statement(t) = Driver x Value	0

For Annual Baseload and Monthly Baseload PPAs, the calculation logic is differently. In those cases, the electricity provider (here the project) is contractually obliged to deliver a certain amount of electricity, either on a yearly (annual baseload) or monthly
(monthly baseload) basis. The revenues for the contracted delivery profile are calculated as above, by multiplying the Driver x Value. However, there are additional revenues in case production is above the delivery profile, and additional costs in case the production is below the contracted delivery profile. To calculate the additional revenues/costs, a selling and buying price has to be added. In case of a higher production than the delivery profile, the additional production is multiplied by the selling price, and the result is the additional income of that period. In case of a lower production than contractually defined , the missing production is multiplied by the buying price, resulting in the additional costs.

The end value of a tariff-price group can be defined as a fix value dependent on an event (for example Last Production Unit End (Mode = Fix) or after achieving a certain production amount in MWh (Mode = Quotal).

The Profit & Loss statement depends on Indexations.

Indexations help to consider inflation.

When there are yearly expenses with an amount of EUR 24'000, this amount increases because of inflation. The expenses in the first month are EUR 2'000. With an Inflation of 2% and a Inflation Frequency per month the second month expenses are 2'003.30 = EUR 2000 * (1 + 2%)^1/12. The Inflation Frequency defines how often the inflation occurs.

	∑	01.2016	02.2016	03.2016	04.2016	05.2016	06.2016	07.2016	08.2016	09.2016	10.2016	11.2016	12.2016
Profit & Loss statement	-24'219	-2'000	-2'003	-2'007	-2'010	-2'013	-2'017	-2'020	-2'023	-2'027	-2'030	-2'033	-2'037

The Profit & Loss statement depends on Interactions between Feed-in-Tariffs and Market Prices.

Conservative Interaction

The Feed-in-Tariff group is valid for the particular Production Unit until the Sales reached their end, regardless if the Marked Price group would achieve higher Sales.

When there is a Feed-in-Tariff of for example 50 EUR/MWh for the first 10 years and a Market Price of 60 EUR/MWh, the higher Market Price is not used before the Feed-in-Tariff expires.

	∑	01.2016	02.2016	03.2016	04.2016	...	11.2025	12.2025	01.2026	02.2016	...	12.2025
Feed-in-Tariff	6'000	50	50	50	50	...	50	50	0	0	...	0
Market Price	7'200	0	0	0	0	...	0	0	60	60	...	60
Sum	13'200	50	50	50	50	...	50	50	60	60	...	60

Opportunistic Interaction

If the Market Price group generates higher Sales, this rate is used for the calculation, regardless if the Feed-in-Tariff group has reached his end.

When there is a Feed-in-Tariff of for example 50 EUR/MWh for the first 10 years and a Market Price of 60 EUR/MWh, the higher Market Price is used since the beginning.

	∑	01.2016	02.2016	03.2016	04.2016	...	11.2025	12.2025	01.2026	02.2016	...	12.2025
Feed-in-Tariff	0	0	0	0	0	...	0	0	0	0	...	0
Market Price	14'400	60	60	60	60	...	60	60	60	60	...	60
Sum	14'400	60	60	60	60	...	60	60	60	60	...	60

Cumulative Interaction

Accumulation of the two groups if they are defined.

When there is a Feed-in-Tariff of for example 50 EUR/MWh for the first 10 years and a Market Price of 60 EUR/MWh, the two tariffs are accumulated during the first 10 years. When the Feed-in-Tariff expires the Market Price is used.

	∑	01.2016	02.2016	03.2016	04.2016	...	11.2025	12.2025	01.2026	02.2016	...	12.2025
Feed-in-Tariff	6000	50	50	50	50	...	50	50	0	0	...	0
Market Price	14'400	60	60	60	60	...	60	60	60	60	...	60
Sum	20'400	110	110	110	110	...	110	110	60	60	...	60

Market Premium Interaction

When the Market Price group is below the Feed-in-Tariff group, the difference between the two groups will be leveled by the market premium.

When there is a Feed-in-Tariff of for example 50 EUR/MWh for the first 10 years and a Market Price of 40 EUR/MWh, a Market Premium of 10 EUR/MWh (Feed-in-Tariff - Market Price) is paid for the first 10 years. When the Feed-in-Tariff expires the Market Price is used

	∑	01.2016	02.2016	03.2016	04.2016	...	11.2025	12.2025	01.2026	02.2016	...	12.2025
Feed-in-Tariff	1'200	10	10	10	10	...	10	10	0	0	...	0
Market Price	12'000	40	40	40	40	...	40	40	60	60	...	60
Sum	13'200	50	50	50	50	...	50	50	60	60	...	60

Sales depend on Cap and/or Floor Bounds.

A Cap or/and Floo value can be added to particular Sales and Opex entities. Dependent from a Driver, a Value for the Cap and Floor bounds is defined. The Floor Values are binding, when the Sales or Opex costs are below the Floor Value. The Cap Values are binding, when the Sales or Opex costs are above the Cap Value.

When a Single amount per Production Unit or per Project is used as Sales or Opex driver, the End date should be Start + 1 months to get a "real" single amount. Otherwise the single amount is divided through the months between start and end. In this case the Cap/Floor value is compared with the single amount divided by the amount of months.

Floor

	Floor <= Sales/Opex	Floor > Sales/Opex
Used Value	Sales/Opex	Floor

Cap

	Cap <= Sales/Opex	Cap > Sales/Opex
Used Value	Cap	Sales/Opex

Cashflow statement

The Cashflow statement derives from the Profit & Loss statement dependent on the Method of Payment.

Name
First Invoicing
Frequency
Target
Calculation

Method of Payment

Methods of Payment act for the calculation off effective cashflows in the Cashflow statement (contrary to expenses and incomes according to the Profit & Loss statement).

Methods of Payment can be allocated to the following input entities:

Sales
Opex
Interests for Debt tranches and Shareholder Loans
Taxes

Methods of Payment are included in the financial model per Transaction Date (TRX) at the earliest. Date inputs before Transaction can be entered but aren't included in the calculations until Transaction (Value = 0). Possible Open Items, for example Sales Receivables, which are transferred by Transaction can be entered as Open Item.

When no Method of Payment is used, the Profit & Loss statement is consistent with the Cashflow statement. Affected net current assets have a value of 0 in the Balancesheet.

Input Field	Description	Unit	Influence	Presetting
Name	Method of Payment name, for example "Interest Payment"	Free text	Descriptive	"payment"
First Invoicing	Date of the first invoicing with a Date Choice Box, for example "first invoicing at Transaction", that is TRX + 0 months.	Date Choice Box	Cashflow statement	Transaction + 0 months
Frequency	Frequency of the payments since the first invoicing, for example "quarterly", that is every 3 month.	Months	Cashflow statement	1 month
Target	Payment target in months, for example "payment 60 days after issuing of the invoice", that is 2 months.	Months	Cashflow statement	0 months

Calculation

Methods of Payment affect Sales calculations, Opex calculations, Debt calculations, Tax calculations and Shareholder Loan calculations.

Balance Sheet

The Balane Sheet yields from the Balance Sheet logic.

The Balance Sheet gets calculated from the closing Balance Sheet of the previous period and from the difference between the Profit & Loss statement and the Cashflow statement of the actual period.

Balance Sheet(t) = Balance Sheet(t - 1) + Profit & Loss statement(t) - Cashflow statement(t)

The following example explains this functionality:

	∑	01.2016	02.2016	03.2016	04.2016	05.2016	06.2016	07.2016	08.2016	09.2016	10.2016	11.2016	12.2016
Profit & Loss statement	48	4	4	4	4	4	4	4	4	4	4	4	4
Cashflow statement	48	0	0	12	0	0	12	0	0	12	0	0	12
Balance Sheet		4	8	0	4	8	0	4	8	0	4	8	0

For 06 / 2016 the book value is calculated as follows:

Balance Sheet(06.2016) = 8 + 4 - 12 = 0

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