A 5 MW geothermal plant in Pakistan needed a financial model that could win over lenders, investors and the regulator. We built an integrated, regulator-ready model that supported $6.5 million in equity and $25 million in debt.
- Location
- Pakistan
- Sector
- Renewables
The Brief
The Client asked us to build an integrated model for a 5 MW geothermal plant, structured at 80:20 debt-to-equity, with grant funding for pre-financing. The model needed to capture plant economics from resource characteristics through to a regulated tariff structure compliant with the National Electric Power Regulatory Authority (NEPRA).
It also had to support financing discussions with lenders and equity investors through dedicated outputs for each stakeholder.
The Obstacle
The well field and generation output had to be sized using resource temperature and flow rate data specific to the site.
The tariff structure had to meet NEPRA's regulatory framework, including CPI indexation and separate treatment of local and foreign operations and maintenance (O&M) costs. Plant performance also had to be modeled realistically, incorporating capacity factor, degradation and parasitic load benchmarks.
Our Approach
We built a financial model covering project cost, financing structure, power generation, tariff design and three-statement projections.
The model captured the regulated return framework and return on equity (ROE), both under NEPRA and during construction, so every stakeholder could see how the project would earn its returns.
What We Delivered
An integrated financial model with dedicated dashboards for equity investors, lenders and the regulator, backed by sensitivity, breakeven and payback analysis.
5 MWgeothermal plant capacity
80:20debt-to-equity structure
Our Impact
The Client received an investable, regulator-ready model supporting $6.5 million in equity and $25 million in debt.
With a clear tariff and return framework in place, the project was positioned to engage lenders, investors and regulators consistently.