Course
An Introduction to Power Sector Financial Planning with FINPLAN
Courses
This publication was produced as part of CCG's FlatPack initiative and provides learning materials for an introductory course on using the FINPLAN tool to equip students with the skills and knowledge to build financial models of power sector projects. It includes editable lecture slides, hands-on exercises, sample learning objectives, and a suggested course timetable.
FlatPack aims to integrate open source energy and financial modelling tools into higher education courses (BSc, MSc, PhD) in universities across the world. This material is adaptable to various contexts and proficiency levels.
In this introductory course, students will explore the conceptual foundations of financial modelling in the power sector, including key principles such as tariff structures, capital and O&M cost estimation, financing terms, and macroeconomic assumptions. Through hands-on use of FINPLAN, students will learn how to process input data, model project financing structures, and assess indicators such as levelized cost of electricity (LCOE), internal rate of return (IRR), net present value (NPV), and payback period.
Acknowledgement
This material has been produced under the Climate Compatible Growth (CCG) programme, with contributions from the International Atomic Energy Agency (IAEA), which brings together leading research organizations and is led out of the STEER centre, Loughborough University. CCG is funded by UK aid from the UK government. However, the views expressed herein do not necessarily reflect the UK government's official policies.Cite as
Tan, N. (2025) An Introduction to Power Sector Financial Planning with FINPLAN. Climate Compatible Growth Teaching Kit Website. Climate Compatible Growth.Courses
FINPLAN Course Core Outline
File 1 contains an outline of the course, its learning objectives, duration, and example assessment methods. In File 2, an example timetable is provided that breaks the course into three different blocks and suggests time allocations. File 3 provides a reading list containing key publications, the FINPLAN manual, and other related interesting publications.
Lecture files
FINPLAN Week 1
Week 1 introduces FINPLAN as a financial planning tool, diving into its methodology and approach. The hands-on exercise guides users through installing the UI and navigating through the different financial tabs.
Lecture files
FINPLAN Week 2
Week 2 covers basic financial concepts such as discounting, net present value, internal rate of return, inflation, and depreciation methods. Additionally, students will understand how to design case studies on FINPLAN and address data needs related to technical and financial parameters.
Lecture files
FINPLAN Week 3
Week 3 is hands-on, with students building a model from scratch following step-by-step user guides. Students will learn what the case data, plant data, and financial manager tabs represent in FINPLAN, as well as the data needed in each tab.
Lecture files
FINPLAN Week 4
Week 4 explains the various financial statements useful for project analysis, such as the balance sheet, income statement, cash flow statement, and shareholder’s return, and guides students in running their models and interpreting these financial results.
Lecture files
FINPLAN Week 5
Week 5 is hands-on, with students diving deeper into building more complex models from scratch following step-by-step user guides. Students will understand the various power plants that can be modelled on FINPLAN and will improve their results interpretation skills.
Lecture files
FINPLAN Week 6
Week 6 introduces the FINPLAN term ‘balancing’. Additionally, students will complete two hands-on exercises on interpreting and balancing a FINPLAN case.
Lecture files
FINPLAN Week 7
Week 7 continues with interpreting and balancing a FINPLAN case, with students completing two more hands-on exercises. The theoretical portion of the course then concludes by covering the methodology of developing scenarios on FINPLAN for financial risk and sensitivity analysis.