Case Study: Utility-Scale Solar Project — Business Plan & 10-Year Financial Model

Client Overview

Industry: Renewable Energy / Infrastructure
Geography: Latin America
Project Stage: Ready-to-Build (RTB)
Asset Type: Utility-Scale Solar Power

The client engaged Coleman Management Advisors (CMA) to support the financing and execution of a large-scale, utility-scale solar power project that had achieved all major development milestones. The project was fully permitted, supported by a long-term Power Purchase Agreement (PPA), and located in a jurisdiction with strong federal and regional tax incentives designed to encourage renewable energy investment.

Despite the project’s strong fundamentals, the client required an institutional-quality business plan and a long-term financial model capable of supporting lender underwriting and complex ownership consolidation.

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Engagement Scope

CMA was retained to deliver the following core workstreams:

• A comprehensive written business plan suitable for lenders, infrastructure investors, and strategic capital providers

• A fully integrated 10-year project finance pro forma, structured to align with non-recourse debt underwriting standards

• Financial modeling that incorporated:

  • Contracted PPA revenue streams

  • EPC pricing and construction cost assumptions

  • Long-term operating and maintenance costs

  • Jurisdiction-specific tax incentives and exemptions

  • Lender-provided debt terms and repayment assumptions

• Clear documentation of a financing and ownership consolidation structure designed to centralize control while minimizing equity dilution

The deliverables were built to support approximately US$200 million in project financing, primarily structured as long-term debt.

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Challenges

1. Multi-Entity Ownership Consolidation

The transaction required the consolidation of ownership across multiple upstream and downstream entities as part of the financing process. This added complexity to cash-flow modeling, control mechanics, and lender risk assessment.

2. Lender-Grade Underwriteability

While the project itself was technically straightforward, lenders required:

• Conservative assumptions

• Transparent cash-flow waterfalls

• Clear debt service coverage and repayment visibility

• Separation between operating cash flows and non-core investments

3. Parallel Capital Allocation Strategy

In addition to construction financing, the overall structure included a modest incremental capital raise intended to fund continued development of additional renewable assets within the broader portfolio. This capital allocation needed to be clearly isolated so it did not impair project-level debt service.

4. Tax Incentive Integration

The financial model needed to accurately reflect:

• Corporate income tax reductions

• Indirect tax exemptions

• Timing effects of incentives on operating cash flow and debt coverage

Any misrepresentation would materially affect lender confidence.

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CMA Approach

CMA applied a project-finance-first methodology focused on bankability, clarity, and diligence readiness.

Key elements of the approach included:

• Structuring the model so that all debt service is supported exclusively by contracted operating cash flows, consistent with non-recourse financing principles

• Designing clear and auditable cash-flow waterfalls and debt service coverage metrics

• Explicitly separating core operating asset economics from future development optionality, allowing lenders to underwrite the project independently

• Drafting the business plan in a formal, credit-committee-ready narrative format, rather than a marketing-oriented pitch

The objective was to produce materials capable of withstanding institutional lender scrutiny, not merely presenting an attractive investment story.

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Execution & Deliverables

Business Plan

CMA delivered a detailed written business plan covering:

• Project background and development status

• Regulatory and permitting framework

• Contractual foundations, including long-term offtake arrangements

• Construction and EPC overview

• Ownership and financing structure

• Risk identification and mitigation strategies

• Long-term operational outlook

10-Year Financial Model

The financial model included:

• Construction-period funding and draw schedules

• Operating revenue projections under the executed PPA

• Operating and maintenance cost forecasts

• Detailed tax modeling reflecting applicable incentives

• Long-term debt assumptions and amortization schedules

• Annual and cumulative debt service coverage ratios

• Conservative base-case cash-flow projections

The model was built for ease of diligence, auditability, and lender adjustment.

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Outcomes & Impact

• The client received a bankable, underwriteable business plan and financial model aligned with institutional project finance standards

• The structure clearly demonstrated the project’s ability to service long-term debt solely from contracted revenues

• Ownership consolidation was articulated without introducing unnecessary equity risk

• Portfolio expansion investments were positioned as upside optionality, not a requirement for base-case performance

The final deliverables positioned the project for advanced lender discussions and financing execution.

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Client Value Statement

CMA delivered a financing-ready asset package that bridged the gap between technical project readiness and institutional capital requirements. By combining disciplined infrastructure finance modeling with clear strategic documentation, CMA enabled the client to move forward confidently with a large-scale renewable energy financing while preserving long-term portfolio upside.

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Call to Action

Coleman Management Advisors supports renewable energy developers, infrastructure sponsors, and investment groups with:

• Lender-grade business plans

• Long-term project finance financial models

• Ownership and financing structuring support

• Capital-raise and lender-readiness advisory

For complex infrastructure projects where precision and credibility matter, CMA delivers strategy that translates directly into financeable outcomes.