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Stage 2 (2021) “Storeland”

Professional Excel Templates for your Business

Stage 2 (2021) "Storeland"

This is a case from the Financial Modeling World Cup 2021, Stage 2 (Feb 19-22) competition. It can be used to expand your knowledge of financial modeling and train for future FMWC Stages.

Case description:

Your objective is to create a financial model and determine the optimal technological solution for Story Trading (ST) company, which is looking to construct a wind power plant in a new market, Storeland. You need to perform a feasibility study of new technologies and determine the efficient sizing mechanism for the wind and storage facility. The ultimate goal is to determine the Equity IRR and the required equity funding under each scenario.

You need to prepare a 27-year monthly model (2 years of construction + 25 years of operations) with a dynamic structure to answer all the questions. To solve the initial questions you only need to model the revenues from the wind facility at spot market prices. The later part of the model, will require you to factor in an opportunity to add a storage facility. You need to find the daily energy generation (in MWh) and revenue (in $) and calculate the hourly generation of energy (in MWh) by taking the total Wind Capacity (500 MW) and multiplying it by the Capacity Factor, which is different for each hour in the day. You should distinguish between mixed storage capacity and full-cycle capacity, and assume that construction costs for both wind and storage are distributed evenly throughout the construction period. ST will be given a grace period of 10 quarters (30 months) after the completion of construction. During the grace period, the company will not repay the debt principal, but it will continue to make quarterly interest payments. The count of grace period quarters should start from the beginning of operations (month 25), not from the beginning of construction!

The downloadable file consists of the following:
-Task: Excel file with given case assumptions; PDF file with Case Materials; PDF file with Questions
-Solution: Excel file with the full Solution Model; PDF file with correct Answers in Bold

This model awarded 500 points + 50 Extra points for the bonus question, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages at https://fmworldcup.com/shop/

 

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