Implementing & Financing a Decarbonized Economy

In the forthcoming decades, the transition to a global low-carbon economy will require tens of trillions of dollars worth of capital investment. Much of that capital investment will directed towards new builds, or retrofits, of major capital projects, whether using technologies that are commercial today or new technologies. This course aims to give students a very practical and detailed introduction to the opportunities and challenges of developing and financing major low-carbon capital projects. Each of the instructors has decades of hands-on experience in developing and financing major capital projects. The process of developing and financing major capital projects is inherently very multidisciplinary--including engineering, business, finance, legal and (often) international relations principles. The course will start at a high level, covering the emissions landscape, policy framework, markets, and main technologies. Then we will dive much deeper into such key tasks as permitting; engineering and resource studies; project pro forma models; successfully negotiating project construction contracts and output sales contracts; arranging the financial terms and legal provisions of bank or bond debt financing; maximizing returns to equity; and monetizing tax and other governmental incentives. Students should be eager to engage in a multi-disciplinary approach both in terms of how to think about the subject matter and in terms of interacting with fellow students who bring a different academic and or work experience than their own. Class preparation for the weekly sessions will require watching a pre-recorded lecture, literature review or case reading, and homework assignments designed to reinforce principles learned. A four-part case study encompassing the development of a 500 MW solar project will be used early on in the class to acquaint students with the tools and issues of project development. We plan to reserve class sessions for homework review, student case study analysis, reinforcement of technical concepts, and free-form discussion. Early in the class, we will assemble small student teams who will over the course of the term work on group projects that will be presented during the last few class sessions. The instructors do not require prior coursework in finance. Basic background materials and additional tutorials will be provided as needed, to bring students up to the technical level required to do the coursework successfully. CONSENT OF PROGRAM FORM: In order to be considered for enrollment, please complete the Consent of Program Form: n https://docs.google.com/forms/d/e/1FAIpQLSesNsNwHyall63FpAPt0sJQsFUlo8y_BwvK5NoRrM4IDj5hgg/viewform?usp=sf_link by Tuesday, February 22nd at 11:59pm PST. Successful applicants will be notified when permission has been granted and will receive a permission number to register for the course in Axess by March 1st. Forms received after the deadline will be reviewed on a rolling basis until the class is full. ENVRES 260 is capped at 20 students. Some priority will be given to E-IPER graduate students.